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CMA Intermediate · Business Laws and Ethics · Employees State Insurance Act, 1948

Under the Employees' State Insurance Act, 1948, the account of the Employees' State Insurance Fund is operated on by which of the following?

The account is operated by an officer authorised by the Standing Committee with the approval of the Corporation. Authorisation by the Standing Committee alone is not enough, and the Act does not give the power to the Labour Commissioner or to members by vote.

  1. AAny member of the Corporation chosen by majority vote at a general meeting
  2. BThe Director General of the Corporation acting alone, without approval
  3. CAn officer authorised by the Standing Committee with the approval of the CorporationCorrect
  4. DThe Central Government's Labour Commissioner

Explanation

Section 26(4) states that the account is operated on by such officer as may be authorised by the Standing Committee with the approval of the Corporation. Both the Standing Committee's authorisation and the Corporation's approval are required, so acting alone or by a Government nominee is not the rule.

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