Section 12 of The Road Transport Corporations Act, 1950
Power to appoint committees and delegate functions.
1[(1)] A 2[Board] may, from time to time by resolution passed at a meeting--
- (a)appoint committees 3[consisting of Directors] for performing such functions as may be specified in the resolution;
- (b)delegate to any such committee or to the 4[Chairman, Vice-Chairman, Chief Executive Officer, the General Manager, the Deputy General Manager or the Chief Accounts Officer of the Corporation] subject to such conditions and limitations, if any, as may be specified in the resolution, such of its powers and duties as it may think fit;
- (c)authorised the 5[Managing Director] 6[or any other officer of the Corporation] subject to such such conditions and limitations, if any, as may be specified in the resolution to exercise such powers and perform such duties as it may deem necessary for the efficient day-to-day administration of its business. 7[(2) The Chairman, Vice-Chairman or Managing Director may delegate any of his powers and duties duties [including powers and duties delegated to him under sub-section (1)] to any officer of the Corporation, and the officer to whom such powers and duties are delegated, shall exercise and perform such powers and duties under the control and supervision of the Managing Director.]
Summary
- The Board can create committees to perform specific tasks.
- Every committee formed by the Board must consist only of Directors.
- The Board can delegate its powers and duties to these committees or to specific high level officers.
- These delegations must be officially authorized by a resolution passed during a meeting.
- The Managing Director or other officers can be authorized to handle the everyday administration of the business.
- Top leaders like the Managing Director can further delegate their powers to other officers.
- Any officer receiving these secondary powers must work under the supervision of the Managing Director.
Practical examples
FAQ
1. Can a non Director join a committee under Section 12 of The Road Transport Corporations Act, 1950?
No, Section 12 of The Road Transport Corporations Act, 1950, states that committees appointed by the Board must consist of Directors.
2. How does the Board delegate its powers under Section 12 of The Road Transport Corporations Act, 1950?
Under Section 12 of The Road Transport Corporations Act, 1950, the Board must pass a resolution at a meeting to delegate its functions or powers.
3. Who supervises officers who receive delegated powers under Section 12 of The Road Transport Corporations Act, 1950?
According to Section 12 of The Road Transport Corporations Act, 1950, such officers perform their duties under the control and supervision of the Managing Director.
Test yourself
1.Under Section 12 of The Road Transport Corporations Act, 1950, what is required for a Board to delegate its functions?
2.According to Section 12 of The Road Transport Corporations Act, 1950, who can serve on a Board committee?
3.Under Section 12 of The Road Transport Corporations Act, 1950, who oversees an officer who has been delegated powers by the Managing Director?
4.Under Section 12 of The Road Transport Corporations Act, 1950, who can the Board delegate its powers to?