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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

The Disciplinary Committee finds CS Arjun Mehta guilty of misconduct mentioned in both the First and Second Schedules. He has been heard. Which action is NOT within the Committee's powers under section 21B(3)?

A fine of Rs 8 lakh is not permitted. Section 21B(3) caps the fine the Disciplinary Committee can impose at rupees five lakhs, though it may reprimand or remove the member's name from the Register permanently or for a period.

  1. AImposing a fine of Rs 3 lakh
  2. BReprimanding him
  3. CRemoving his name from the Register for a period it thinks fit
  4. DImposing a fine of Rs 8 lakhCorrect

Explanation

Section 21B(3) permits reprimand, removal of the name permanently or for a period, and a fine up to Rs 5 lakh. A fine of Rs 8 lakh exceeds that ceiling, so it is outside the Committee's powers. Rs 3 lakh is within the ceiling.

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