Question

The Company Law Board deals only with the legal matters of companies.

• A. True
• B. False

Answer 1

The correct option is A True

This statements is False because of the following reasons :

(i) According to the Companies (Amendment ) Act,1988 the Company Law Board is to exercise and discharge such power and function as may be given to it by or under the Companies Act or any other law.

(ii) Almost all the powers and function of the Central Government under the provision of the Companies Act, have been delegated to the Board.

(iii) The Company Law Board is the executive arm of the department of company affairs.

(iv) Most of the powers, which were so long exercised by the court or the Central Government are now transferred to the Company Law Board.

(v) These powers are mainly judicial in nature.

(vi) The board also has power of civil court (Section 4C).

(vii) It also has the power of punishment for contempt of any order passed by it.

(viii) The Company Law Board shall be guided by the principles of nature justice and shall act independently in its discretion.

(ix) Hence, the Company Law Board only deals with the legal matters of companies , but also other matters.