21 August 2009
In a company's annual report,auditors have mentioned in the annexure that said company has GRANTED AN UNSECURED LOAN TO 2 COMPANIES COVERED IN THE REGISTER MAINTAINED UNDER SEC. 301 OF COs. ACT.
My specific question is why the auditors don't mention it with names of the borrowers.Is the section 301 incomplete or the auditors have submitted inadequate report.
As a shareholder cud I ask for more details from A)auditors & B)management of the said company during AGM.
21 August 2009
The audit report will mention the number of parties and the cumulative amount. If there are say 500members they cannot list out all the names in the report. However you have right to ask for the details at the agm. You have to sent letter to the company atleast before 7days of the meeting. the management will reply in the agm.
You have all the right to inspect the 301 register.
Please read below:
INSPECTION OF 301 REGISTER
The Register aforesaid shall be kept at the registered office of the company and it shall be open to inspection of any member at such office, and extracts may be taken there from without fee or additional fee as the case may be. Copy of the Register of contracts or any part thereof, on payment of rupee one for every 100 words or a fraction thereof, may be taken.
If any inspection is refused the company and every officer of the company who is in default shall be punishable with fine, which may extend to Rs. 500 for every day for which the refusal or default is continued.
The Company Law Board [powers vested with the Tribunal vide the Companies (Second Amendment) Act, 2002] may by an order compel an immediate inspection of the Register or direct that the extract required to be allowed to be taken by the person requiring it or that the copy required shall forthwith be sent to the person requiring it, as the case may be.