{"id":226418,"date":"2023-02-13T20:21:28","date_gmt":"2023-02-13T14:51:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=226418"},"modified":"2023-02-20T13:15:31","modified_gmt":"2023-02-20T07:45:31","slug":"a-question-of-quorum","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-question-of-quorum\/","title":{"rendered":"A question of quorum"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cA question of quorum\u201d <\/strong>published in the <strong>Business Standard<\/strong> on <strong>13th February 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian economy<\/p>\n<p><strong>Relevance<\/strong>&#8211; Regulation of economic activities<\/p>\n<p><strong>News<\/strong>&#8211;\u00a0 Competition Commission of India has invoked the <strong>\u201cdoctrine of necessity\u201d <\/strong>to clear six deals involving mergers &amp; acquisitions and investment proposals.<\/p>\n<h2><strong>What are the issues raised by this event?<\/strong><\/h2>\n<p>It lacked the <strong>requisite three-member quorum<\/strong> after the Chairperson retired. The<strong> Competition Act <\/strong>provides that there should be at least three members to approve deals.<\/p>\n<p>But, the CCI obtained a green signal for a two-member quorum from the law ministry to the corporate affairs ministry.<\/p>\n<h2><strong>What is the legality of action by CCI?<\/strong><\/h2>\n<p>CCI\u2019s actions were not a violation of the law.<\/p>\n<p><strong>Section 15 of the Competition Act<\/strong> provides that no proceeding of the commission shall be invalid due to<strong> any vacancy in, or any defect in the constitution<\/strong> of the Commission.<\/p>\n<p>As per section 15, any<strong> irregularity in the procedure of the Commission <\/strong>not affecting the merits of the case shall not make the proceeding invalid.<\/p>\n<h2><strong>What are the important questions raised by CCI action?<\/strong><\/h2>\n<p>The first is the delay in the <strong>appointment of a new chairperson<\/strong>.<\/p>\n<p>The second is that the government was unable to find a suitable successor by the time of Chairman retirement. In this scenario, a<strong> reference to the law ministry<\/strong> on the issue of a quorum ahead of the event would have also <strong>reduced the anxiety for companies and investors <\/strong>waiting for their deals to be cleared.<\/p>\n<p>The third is whether a two-member commission has the <strong>ability to scrutinise the merits<\/strong> of so many deals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cA question of quorum\u201d published in the Business Standard on 13th February 2023. Syllabus: GS3- Indian economy Relevance&#8211; Regulation of economic activities News&#8211;\u00a0 Competition Commission of India has invoked the \u201cdoctrine of necessity\u201d to clear six deals involving mergers &amp; acquisitions and investment proposals. What are the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/a-question-of-quorum\/\">Continue reading <span class=\"screen-reader-text\">A question of quorum<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-226418","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704704837},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/226418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=226418"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/226418\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=226418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=226418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=226418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}