Question

Consider the following statements :
1. Under the new Company Act, 2013, a director is treated as related party.
2. Under the new Company Act, 2013, an 'Official Liquidator' should be appointed under subsection (1) of Section 359.
3. Life Insurance Corporation cannot be treated as a 'Public Financial Institution'.
Which of the above statement/s is/are not correct

• A. Only 3
• B. Only 2
• C. 1 and 3
• D. 1 and 2

Answer 1

Answer: (A)

Only 3

LIC is one of the financial institutions to be established in India after independence. The full form of LIC is life insurance corporation and it was established in 1956. The main aim behind the establishment was to spread the message of life insurance in the country. Also, it was required to mobilize people's savings.