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Part I of Schedule V to the Companies Act, 2013 requires, among the conditions for appointing a managerial person without Central Government approval, that the person has not been detained for any…

Question and options

Part I of Schedule V to the Companies Act, 2013 requires, among the conditions for appointing a managerial person without Central Government approval, that the person has not been detained for any period under which Act?

  1. National Security Act, 1980

  2. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974

  3. Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988

  4. Prevention of Money-laundering Act, 2002

Answer and explanation

Correct answer: B - Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974

Part I of Schedule V to the Companies Act, 2013 requires, among its conditions, that the appointee has not been detained for any period under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974. The National Security Act and the narcotics preventive-detention law also provide for detention, but the Schedule names only COFEPOSA.

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