shareholders queries

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LEENA (Querist)

23 August 2010 If a Company is having shareholders more than 2lac and many of the shareholders including the minority shareholders are constantly raising accounts related and other queries;
Is the Company bound to answers all these queries?
Should the company answer these queries at the earliest or wait till the AGM? What are the obligations on the company to answer these query.

Ankur Garg

Ankur Garg (Expert)

25 August 2010 YES

Company is bound to answer shareholders queries. Otherwise a shareholder may raise a complaint against the company with sebi or STX.

Whether a complaint is true or false is a matter to be decided by the concerned authority or SEBI.

So it is advisable to answer shareholders queries as early as possible to avoid administrative inconvenience.

Regards

LEENA

LEENA (Querist)

30 August 2010 Can a shareholder ask for extract of minutes of the Board & sahreholders meetings. What are the other rights of the shreholders if the don't respond them.

Regards

Ankur Garg

Ankur Garg (Expert)

10 September 2010 As per section 196 shareholder has a right to inspect the GM minutes and ask for extracts on payment of prescribed fee.

Board minutes are not allowed for inspection under company law.

Thanks

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