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Unit 1: Nature of the Companies Act, 1956

3. The CLB shall consist of such number of members, not exceeding nine, as the Central Notes
Government deems fit, to be appointed by that Government by notification in the Official
Gazette.
4. The members of the CLB shall possess such qualifications and experience as may be
prescribed.
5. One of the members of the Board shall be appointed by the Central Government to be the
Chairman of the CLB.
6. No act done by the CLB shall be called in question on the ground only of any defect in the
constitution of, or the existence of any vacancy in the CLB.
7. The CLB may, by order in writing, form one or more Benches from among its members
and authorise each such Bench to exercise and discharge such of the Board’s powers and
functions as may be specified in the order. Every order made or act done by a Bench in
exercise of such powers or discharge of such functions shall be deemed to be the order or
act, as the case may be, of the Board.
8. The CLB shall in the exercise of its powers and the discharge of its functions under the Act
or any other law be guided by the principles of natural justice and shall act at its discretion.
9. The CLB shall have power to regulate its own procedure.

Appeals against the Orders of the CLB

Section 10 F provides that any person aggrieved by any decision or order of CLB may file an
appeal to the high court within 60 days from the date of communication of the decision or order
of CLB to him on any question of law arising out of the order.

This period of 60 days may be extended by a further period not exceeding 60 days if the high
court is satisfied that the appellant was prevented by sufficient cause from filing the appeal
within the said period of 60 days.
1.2.3 National Advisory Committee on Accounting Standards

Section 210 A provides that the Central Government may, by notification in the Official Gazette,
constitute National Advisory Committee on Accounting Standards, to advise the Central
Government on the formation and laying down of accounting policies and accounting standards,
for adoption by companies or class of companies under the Companies Act, 1956.

1.2.4 The Securities and Exchange Board of India

Section 2(45B) provides that the Central Government may, by notification in the Official Gazette,
establish the Securities and Exchange Board of India (in short - SEBI) for the protection of
investors in securities.
Powers of SEBI

Section 55A provides that the provisions contained in sections 55 to 58, 59 to 84, 108, 109, 110, 112,
113, 116 to 122, 206, 206 A and 207 shall be administered by SEBI, so far as they relate to issue and
transfer of securities and non-payment of dividend in case of:

(i) Listed public companies;
(ii) Those public companies which intend to get their securities listed on any recognised stock
exchange in India.

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