Rights of a share holder

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Gourav Mehta (Querist)
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27 March 2009 Can a share holder of a banking company asks for information about the advance tax paid by the company. Either under RTI Act or the Companies Act.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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27 March 2009
Yes he can ask only at the AGM or EGM.

He cannot write a letter and go to bank and ask them just like that.

This is the basic right given to shareholders to ask queries at the AGM.

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Gourav Mehta

Gourav Mehta (Querist)
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30 March 2009 Dear Sir,
Thanks for your reply, but can he be able to ask this question under the Right to Information Act. Please put some light on it.

Thanks and regards
Gourav Mehta
+9892815748

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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22 July 2025 Great question about shareholder rights and access to company information, especially regarding advance tax paid.

Here’s a detailed answer:

Can a shareholder of a banking company ask for information about advance tax paid by the company?
1. Under Companies Act, 2013 (or earlier Act)
Shareholders do have the right to ask questions and seek information related to the company’s operations, financials, and performance during the Annual General Meeting (AGM) or Extraordinary General Meeting (EGM).

However, the company is not obligated to provide information on demand outside the AGM or in writing unless it relates to their statutory rights or is part of the disclosures in the financial statements.

Information on tax payments is usually disclosed in the financial statements or tax notes forming part of the annual accounts, which shareholders can access.

2. Right to Information Act, 2005 (RTI Act)
RTI Act applies primarily to public authorities listed under the Act’s Schedule.

Private companies and banks are generally not public authorities under RTI, except where they perform public functions or receive substantial government funding.

Therefore, a shareholder cannot directly use RTI to obtain information from a banking company, unless the company qualifies as a public authority under RTI.

Shareholders have to rely on their rights under the Companies Act and the disclosures in the company’s financial statements.

Summary:
Aspect Can Shareholder Request? How/Where?
Advance tax info Yes, but generally only at AGM/EGM Through questions during AGM
RTI Act Usually No, unless company is public authority RTI does not typically apply here
Financial Statements Yes, info disclosed in annual reports and notes Shareholders can access annual reports

If the shareholder wants detailed information, the best way is:

Attend the AGM and ask questions.

Inspect copies of annual accounts filed with Registrar of Companies.

Request information formally as per Companies Act procedures (e.g., under Section 146 for inspection of documents).

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