CORP · S03PromotionAsked in 6 of 7 papers (Jun ’22, Dec ’22, Jun ’23, Dec ’23, Jun ’24, Jan ’25)
Under the Companies Act, 2013: An external lawyer is not named as a promoter, has no control, shares, or board office, and gives legal advice solely in a professional capacity. The Board frequently follows that advice. Under the proviso to section 2(69)(c), what is the best conclusion?
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Why
Pro
AThe lawyer is necessarily a promoter whenever the Board follows any advice more than once.
BThe lawyer becomes a promoter only because professional fees were charged.
CEvery external professional is a promoter whether or not the Board acts on the advice.
DThe professional-capacity proviso prevents that conclusion on these facts.
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