Corporate and Other LawsMCQQuestion 12514 of 300
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Under Section 8(6) of the Companies Act, 2013, the Central Government may revoke the license granted to a Section 8 company if it contravenes any of the requirements. What must the Central Government do before revoking such license?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Give the company a reasonable opportunity of being heard by giving written notice of intention

All Options:

  • AGive the company a reasonable opportunity of being heard by giving written notice of intention ✓
  • BObtain prior sanction from the National Company Law Appellate Tribunal
  • CAppoint an interim administrator without hearing
  • DDirect the company to immediately transfer all assets to the Prime Minister National Relief Fund

Detailed Solution & Explanation

Correct Answer: Option **A** (Give the company a reasonable opportunity of being heard by giving written notice of intention) **Statutory Provision (Section 8 - Formation of Companies with Charitable Objects):** Section 8(6) mandates that the Central Government may by order revoke the license granted to the company if it contravenes requirements, provided that before revoking a license, the Central Government shall give the company a reasonable opportunity of being heard. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

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Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

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Explain the concept of differential rights and its significance in the context of buyback of securities.

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