case law from companies act

Save Share

This query is : Resolved

sruthi (Querist)

06 April 2010 company increased the authorised share capital by spl resolution.however, the notice in form no 5 was not filed with registrar of the companies nor the requisite fee was paid on the increase.After 2yrs, the earlier resolution was recinded and the sharecapital was brought back to the original level.state whether the company committed any offence and if so was it a continuing offence?

ans:the company can file with ROC form 5within 2 yrs with fine.
my query is the company rescinded the resolution.
1.is this allowed?
2.what is the liability of a firm in such a situation?

Rasesh

Rasesh (Expert)

07 April 2010 The facts of your case are closely similar to a case in the A.P. High Court. In this case, the company had not filed Form No. 5. Later on the Company cancelled the resolution with retrospective effect bringing the authorised capital to original level. The Court allowed such cancellation of resolution and finally the Company had to pay penalty at Rs. 100/- per day as per the court order.

Please see the link below:

https://www.caclubindia.com/articles/print_this_page.asp?article_id=836

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now