Section 10E - Constitution of Board of Company Law Administration. - Companies Act, 1956

[1] [PART IA BOARD OF COMPANY LAW ADMINISTRATION Constitution of Board of Company Law Administration. 10E. [2] [(1) As soon as may be after the commencement of the Companies (Amendment) Act, 1988, the Central Government shall, by notification in the Official Gazette, constitute a Board to be called the Board of Company Law Administration. (1A) The Company Law Board shall exercise and discharge such powers and functions as may be conferred on it [3] [before the commencement of the Companies (Second Amendment) Act, 2002], by or under this Act or any other law, and shall also exercise and discharge such other powers and functions of the Central Govern ment under this Act or any other law as may be conferred on it [4] [before the commencement of the Companies (Second Amendment) Act, 2002] by the Central Government, by notification in the Official Gazette under the provisions of this Act or that other law.] (2) The Company Law Board shall consist of such number of members, not exceeding [5] [nine], as the Central Government deems fit, to be appointed by that Government by notification in the Official Gazette: [6] [ Provided that the Central Government may, by notification in the Official Gazette, continue the appointment of the chairman or any other member of the Company Law Board functioning as such immediately before the commencement of the Companies (Amendment) Act, 1988, as the chairman or any other member of the Company Law Board, after such commencement for such period not exceeding three years as may be specified in the notification.] [7] [(2A) The members of the Company Law Board shall possess such qualifications and experience as may be prescribed. [8] ] (3) One of the members shall be appointed by the Central Government to be the chairman of the Company Law Board. (4) No act done by the Company Law Board shall be called in question on the ground only of any defect in the constitution of, or the existence of any vacancy in, the Company Law Board. [9] [(4A) Omitted by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991.] [10] [(4B) [11] [The Board] 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; and 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. (4C) Every Bench referred to in sub-section (4B) shall have powers which are vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely: (a) discovery and inspection of documents or other material objects pro ducible as evidence; (b) enforcing the attendance of witnesses and requiring the deposit of their expenses; (c) compelling the production of documents or other material objects pro ducible as evidence and impounding the same; (d) examining witnesses on oath; (e) granting adjournments; (f) reception of evidence on affidavits. (4D) Every Bench shall be deemed to be a civil court for the purposes of section 195 and [12] [Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)], and every proceeding before the Bench shall be deemed to be a judicial pro ceeding within the meaning of sections 193 and 228 of the Indian Penal Code, 1860 (45 of 1860), and for the purpose of section 196 of that Code.] [13] [(5) Without prejudice to the provisions of sub-sections (4C) and (4D), the Company Law Board shall in the exercise of its powers and the discharge of its functions under this Act, or any other law be guided by the principles of natural jus tice and shall act in its discretion. (6) Subject to the foregoing provisions of this section, the Company Law Board shall have power to regulate [14] its own procedure.] ---------------------------------- Notes:- [1] Inserted by the Companies (Amendment) Act, 1963, Act 53 of 1963, section 4, w.e.f. 1-1-1964. [2] Substituted by the Companies (Amendment) Act, 1988, section 4, w.e.f. 31-5-1991, for sub-section (1) which read as: "(1) As soon as may be after the commencement of the Companies (Amendment) Act, 1963 (53 of 1963) the Central Government shall, by notification in the Official Gazette, constitute a Board to be called the Board of Company Law Administration to exercise and discharge such powers and functions conferred on the Central Government by or under this Act or any other law as may be delegated to it by that Government." [3] Inserted by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [4] Inserted by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [5] Substituted for five by the Companies (Amendment) Act, 1974, Act 41 of 1974, section 4, w.e.f. 1-2-1975. [6] Inserted by the Companies (Amendment) Act, 1988, section 4, w.e.f. 31-5-1991. [7] Inserted by the Companies (Amendment) Act, 1988, section 4 , w.e.f. 4-8-1989. [8] See Company Law Board (Qualifications, Experience and other conditions of service of Members) Rules, 1993. Has been notified under this sub-section. [9] Omitted by the Companies (Amendment) Act, 1988, section 4, w.e.f. 31-5-1991. Sub- section (4A), as inserted by Act 31 of 1965, w.e.f. 15-10-1965 read as: "(4A) The Board, with the previous approval of the Central Government, may, by order in writing authorize, the chairman or any of its other members or its principal officer (whether known as secretary or by any other name) to exercise and discharge, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions as it may think fit; and every order made or act done in the 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." [10] Inserted by the Companies (Amendment) Act, 1974, 41 of 1974, section 4, w.e.f. 1-2-1975. [11] Substituted for the "Without prejudice to the provisions of sub-section (4A), the Board, with the previous approval of the Central Government". by the Companies (Amendment) Act, 1988, section 4, w.e.f. 31-5-1991. [12] Substituted by Act 46 of 1977, section 2 for "Chapter XXXV of the Code of Criminal Procedure, 1898, (5 of 1898)", w.e.f. 24-12-1977. [ Substituted for Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898) by the Companies (Amendment) Act, 1977 ]. [13] Substituted by the Companies (Amendment) Act, 1988, section 4, w.e.f. 31-5-1991 for sub-sections (5) and (6) which read as: "(5) The procedure of the Company Law Board shall be such as may be prescribed. (6) In the exercise of its powers and discharge of its functions, the Company Law Board shall be subject to the control of the Central Government." [14] See Company Law Board Regulations, 1991 and Company Law Board (Fees on Applications and Petitions) Rules, 1991.