Defination of Company Law Board in India

The Company Law Board (CLB) in India was a quasi-judicial body that exercised equitable jurisdiction, which was earlier being exercised by the High Court or the Central Government, concerning company law matters. It was established by the Central Government under Section 10(E) of the Companies Act, 1956 on May 31, 1991.

Here's a breakdown of its key aspects:

 * Quasi-Judicial Body: The CLB functioned like a court in resolving disputes related to company affairs, but it was not a regular court. It had the power to regulate its own procedures and was guided by the principles of natural justice.

 * Jurisdiction: It had jurisdiction over various matters under the Companies Act, 1956, including:

   * Oppression and mismanagement (Sections 397/398)

   * Transfer and transmission of shares

   * Refusal to register transfers

   * Rectification of the register of members

   * Investor protection

   * Related party transactions

   * And other specific sections of the Companies Act.

 * Powers and Functions: The CLB had powers similar to a court under the Code of Civil Procedure in certain matters, such as:

   * Discovery and inspection of documents

   * Enforcing the attendance of witnesses

   * Compelling the production of documents

   * Examining witnesses on oath

   * Granting adjournments

   * Receiving evidence on affidavits

   * It could also recommend the removal of managerial personnel.

 * Structure: The CLB had a Principal Bench in New Delhi and regional benches located in New Delhi, Mumbai, Kolkata, and Chennai.

 * Objective: The primary objectives of the CLB were to:

   * Protect the interests of shareholders, especially minority shareholders.

   * Address shareholder grievances.

   * Ensure companies function smoothly and in compliance with the law.

   * Provide a speedier and more accessible forum for dispute resolution compared to High Courts in certain company law matters.

 * Appeal: Any person aggrieved by a decision or order of the CLB could file an appeal to the High Court within sixty days on any question of law arising out of such order.

Replacement by National Company Law Tribunal (NCLT):

The Company Law Board was dissolved with effect from June 1, 2016, and its powers and functions were transferred to the newly constituted National Company Law Tribunal (NCLT) under the Companies Act, 2013. The establishment of the NCLT was based on the recommendation of the Justice Eradi Committee, aiming to consolidate the jurisdiction of various bodies dealing with corporate disputes for faster resolution and to improve the ease of doing business in India. Appeals from the NCLT lie with the National Company Law Appellate Tribunal (NCLAT).