Page 9 - DCOM106_COMPANY_LAW

Company Law

Notes 3. Companies registered but not formed under any previous company laws to the extent and
in the manner declared in ........................................
4. Companies Act, 1956 is not applicable to.................................

5. The Central Government is the supreme authority responsible for the administration of
..............................................

1.2 Company Law Administration

The present set up dealing with Company Law Administration, directly or indirectly, at various
stages and providing for various administrative authorities is as follows:
1. The Central Government
2. The Company Law Board
3. National Advisory Committee on Accounting Standards
4. Securities and Exchange Board of India
5. Official Liquidator
6. Advisory Committee
7. Courts.

1.2.1 The Central Government (s.637)

The Central Government is the supreme authority responsible for the administration of company
law. It acts through the Department of Company Affairs in the Ministry of Law, Justice and
Company Affairs. It is, however, not possible for the Central Government to directly look after
the day-to-day administration of company law. It has, therefore, delegated its powers to the
Company Law Board which acts as the executive arm of the Department of Company Affairs.
The Company Law Board exercises powers which have been conferred on it by the Companies
Act and those powers which are delegated to it by the Central Government.

Section 637 empowers the Central Government to delegate any of its powers and functions, by
notification in the Official Gazette (except the power to appoint Public Trustee under s. 153A) to
some other authority as may be specified in the notification.
A copy of every notification shall, as soon as, after it is issued, be placed before both the Houses
of Parliament.

Now, for all practical purposes, the day-to-day administration of company law is carried out by
the Company Law Board.

1.2.2 Constitution of Board of Company Law Administration

Section 10 E provides as follows:

1. It empowers the Central Government to constitute the Board of Company Law
Administration (CLB).
2. The Company Law Board shall exercise and discharge such powers and functions as may
be conferred on it by or under the Companies Act, 1956 or any other law. Further, it shall
also exercise and discharge such other powers and functions of the Central Government
under this Act or any other law as may be conferred on it by the Central Government, by
notification in the Official Gazette under the provisions of the Companies Act, 1956 or that
other law.

4 LOVELY PROFESSIONAL UNIVERSITY