Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Values, Ethics and Professional Conduct

The Council wishes to sign a memorandum with a regulatory agency of a foreign country to perform its functions. Separately, it plans investor awareness programmes. Which statement is correct under section 15 of the Company Secretaries Act, 1980?

The memorandum with a foreign agency needs the Central Government's prior approval, while conducting investor education and awareness programmes is a Council duty with no such condition. Section 15(2)(jc) attaches the approval requirement, whereas section 15(2)(jb) does not.

  1. ABoth the memorandum and the awareness programmes need prior Central Government approval
  2. BThe memorandum needs prior Central Government approval; conducting investor education and awareness programmes is a Council duty without such a conditionCorrect
  3. CNeither activity is within the Council's duties, as they belong to the Institute under section 15A
  4. DThe memorandum needs no approval, but awareness programmes need prior Central Government approval

Explanation

Section 15(2)(jc) allows the Council to enter into a memorandum or arrangement with a foreign agency only with prior Central Government approval. Section 15(2)(jb) lists investor education and awareness programmes as a duty with no approval condition. Section 15A does not list either activity.

Did you get it right without looking?

One question tells you little. A timed set on Values, Ethics and Professional Conduct shows your real accuracy, how long you take and where you lose marks.

Practise Values, Ethics and Professional ConductFree diagnostic mock

More Values, Ethics and Professional Conduct questions