Directors refusing to file Annual Returns

Pvt ltd 191 views 2 replies

Nivas Vee

7 Points Joined February 2018

A company had 2 directors and one Director appointed one more Director without the knowledge of existing Directors & shareholders, transferrd all assets and money in bank to the relatives of both the Directors and abandoned the company. Both of them are untraceable and Annual Reports is not filed for two years. What would be the legal implications of the existing Directors & Shareholders ?

The CA is saying he won't file unless the Director who appointed him writes him an email. All Bank statements and bills are in the possession of the CA. CA crosses the limit and is asking the other Directors and shareholders to exit from the company by transferring shares in the name of those two missing Directors.

Should it be reported to MCA or a cheating case filed in police or file a suit in court ?

Kindly advice.

Replies (2)

Chirag

Professional

1979 Points Joined December 2017

Whether CA was also director ? How a professional can do this kind of improper behaviour ,but what I understood from the given facts that one additional director appointed without having any meeting definitely with the fake resolution ,and money from the bank is siphoned off in the personal account of directors or their relatives , this is a direct case of breach of trust and FIR should be filed against absconded director after giving them last opportunity from company side ,AOC 4 and MGT 7 can be filed by appointing another director by single director ,and if no liability is at there then you can go for strike off ,if CA is consultant only then demand back all documents in his custody and if he is a stat auditor then with the special notice you can remove him by appointing another Stat auditor and compliance of law ,if you find something irregular done by CA then you can also complaint to ICAI for unethical practices with evidences...

Disclaimer :- For Educational purpose only should not be considered professional advice .