Amended and updated notes on section 378U of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Committee of directors.
Chapter XXIA PART-III (Sections 378O to 378Z) of the Companies Act 2013 (CA 2013) deals with the provisions related to management of producer company. Section 378U of CA 2013 provides for Committee of directors.
Recently, we have discussed in detail section 378T (Liability of directors) of CA 2013. Today, we learn the provisions of section 378U of the Companies Act 2013.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.
Accordingly, the provisions of section 378U are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378U the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIA (PART-III) |
| Chapter Name | Management of Producer Company |
| Section No. | 378U |
| Section Name | Committee of directors |
| Monthly Updated Edition | Company Law PDF |
Section 378U: Committee of directors
Section 378U(1) of Companies Act
The Board may constitute such number of committees as it may deem fit for the purpose of assisting the Board in the efficient discharge of its functions:
Provided that the Board shall not delegate any of its powers or assign the powers of the Chief Executive, to any committee.
Section 378U(2) of Companies Act
A committee constituted under sub-section (1) may, with the approval of the Board, co-opt such number of persons as it deems fit as members of the committee:
Provided that the Chief Executive appointed under section 378W or a director of the Producer Company shall be a member of such committee.
Section 378U(3) of Companies Act
Every such committee shall function under the general superintendence, direction and control of the Board, for such duration, and in such manner as the Board may direct.
Section 378U(4) of Companies Act
The fee and allowances to be paid to the members of the committee shall be such as may be determined by the Board.
Section 378U(5) of Companies Act
The minutes of each meeting of the committee shall be placed before the Board at its next meeting.