MCA Bars NCLT Members From Being Posted To Locations Where They Have Worked As CAs, Company Secretaries
[ By Bobby Anthony ]The Ministry of Corporate Affairs (MCA) has notified rules restricting members of the National Company Law Tribunal (NCLT), from being posted to locations where they have worked as chartered accountants, company secretaries or cost accountants.The MCA rules also restrict NCLT members from being posted to locations where any of their close relatives are working as...
The Ministry of Corporate Affairs (MCA) has notified rules restricting members of the National Company Law Tribunal (NCLT), from being posted to locations where they have worked as chartered accountants, company secretaries or cost accountants.
The MCA rules also restrict NCLT members from being posted to locations where any of their close relatives are working as advocates, chartered accountants, cost accountants or company secretaries.
Under clause 15A of the NCLT Amendment Rules, 2019, the initial posting of a member shall be done by the central government in consultation with the President of the NCLT with any subsequent transfers being done by the President alone.
The notification also stated that members would not be transferred before completing three years at a location, except on administrative grounds in consultation with the central government or on a personal request basis.
Further, the rules require that members should not be posted in a location for longer than three years without sufficient reasons for the same.
As per the notification, transfer on personal request may be based on considerations such as serious medical grounds, serious dislocation in children’s education and unavoidable family responsibilities.