Section 401 of the Companies Act, 2013
Section 401 of the Companies Act, 2013 deals with the power of the Central Government to direct the inclusion of matters in the Tribunal’s orders.
🔹 Section 401 – Power of Central Government to Direct Inclusion of Matters in Tribunal's Orders
📘 Bare Act Language:
The Central Government may, by order, direct that in the case of any company or class of companies, the Tribunal shall, in respect of any matter before it under this Act, include in its order such directions or such other matters as may be specified in the order.
🧠 Explanation:
The Central Government has the authority to instruct the National Company Law Tribunal (NCLT) to include specific directions or matters in its orders.
This applies to any company or class of companies and for any matter pending before the Tribunal under the Companies Act, 2013.
The intent is to allow the government to ensure uniformity or address policy concerns in decisions issued by the Tribunal.
✅ Purpose:
Helps the government standardize legal orders affecting companies.
Provides flexibility in guiding NCLT decisions for special classes of companies, such as government companies, foreign companies, or sector-specific entities.
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