Query by shareholders regarding financials

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2011 Can a shareholder ask for the complete break up of Sundry Debtors or Loans and Advances appearing in the balance Sheet including the amount, dates, purposes etc minute details which are generally not appear in the Balance Sheet or its schedules? Whether company can deny to provide the minute details. If yes on what ground? Shareholder is also asking about the Board resolution sanctioning the outgo of huge amount. Can he do so on the ground the right of shareholders? Please suggest.
Thanks.

udit sharma

udit sharma (Expert)
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19 February 2011 Yes..a shareholder can very well ask for the complete break up of the amount as aforesaid and the Company has no right to deny the details asked for by the shareholder. A shareholder can see the copy of the Board resolution sanctioning the outgo of the huge amount but the Company is under no obligation to provide certified true copy of the Board Resolution as aforesaid to the shareholder.

As per the provisions of section 196 of the Companies Act, 1956 a Shareholder has the right to inspect the minutes of the General Meeting and not the Board Meeting. Keeping the intention of the law behind introduction of this section in mind, in my opinion the Shareholder has no right to demand the copy of the Board resolution but if the managment so desires, you can provide a copy of the same to him.

God Bless

CS Udit Sharma

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Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2011 What will be charges the Company can ask for providing the break up detail of out go.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2011 What will be charges the Company can ask for providing the break up detail of out go.