Question

The Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.

• A. True
• B. False

Answer 1

The correct option is A True

This statement is True because of the following reasons:

(i) Section (411-415) of the Companies Act states "For the purpose of advising the Central and the Company Law Board on such matters arising cut of the administration of this companies Act as may be referred to it by that the Government or Board.

(ii) The Central Government may constitute an Advisory Committee consisting not more than five person with suitable qualifications.

(iii) The committee is mainly set up to guide and advise the Central Government and Company Law Board on matter arising out of the administration of the Companies Act.

(iv) The advisory committee has power only to give advice.

(v) It has no power to investigate the matter or to make an inquiry.

(vi) Thus, the Advisory Committee is set up to advise the Central Government and Company Law Board on the administration of the Companies Act.