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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Business Ethics, Code of Conduct and Anti-Bribery

Under Section 9 of the Prevention of Corruption Act, 1988, who is empowered to prescribe the guidelines against which a commercial organisation's adequate procedures are assessed?

The Central Government prescribes the guidelines, acting in consultation with concerned stakeholders including departments. Commercial organisations then put procedures in place in compliance with them, which is what the adequate procedures defence in Section 9 requires them to prove.

  1. AThe Central Government, in consultation with concerned stakeholders including departmentsCorrect
  2. BThe organisation's own board of directors
  3. CThe Institute of Company Secretaries of India
  4. DThe Securities and Exchange Board of India

Explanation

Section 9(5) provides that the Central Government, in consultation with concerned stakeholders including departments, prescribes the guidelines that organisations can put in place for compliance. The board designs its programme but does not set the statutory guidelines.

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