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ROC Audit

1748 views 5 replies

Alok

Principal Consultant

91 Points Posted on 03 February 2011

Hi,

I am a director and shareholder in a pvt ltd company in Delhi. There are only two directors in the company. Recently, other director has started doing mis-conduct in the company. For example, appointing new director in the company without any BoD, increasing his share capital to himself, forging my signature on company documents.

I have already filed complaints to ROC. But, still ROC has not taken any action against him. I would like to know whether it is possible to request audit by ROC on the company.

Please let me know your view points.

Thanks

Replies (5)

cs ashwini kumar

Company Secretary in Practice

173 Points Posted on 03 February 2011

Hi,

Just file petition under section 397/398 with the CLB (Company Law Board) and request for cancellation of such allotment of shares/appointment of directors etc. this is a clear case of oppression and mismanagement.

Regards

Alok

Principal Consultant

91 Points Posted on 03 February 2011

But, I heard that CLB takes year for the decision. Can't ROC do something in this. Is there any other authority to file the complaint.

Jayashree S Iyer

Company Secretary

3224 Points Posted on 04 February 2011

Filing petition before CLB and CLB hearings, no doubt, takes some time. But authority for hearing shareholders / members grievances is CLB. In your case oppression and mis-management are involved and hence for enforcing your rights CLB is the appropriate authority. You have to move a petition or application before CLB. Based on your petition they may order inspection of books.

CS Nitin Jaiswal

Company Secretary

283 Points Posted on 04 February 2011

Agree with Jayashree S Iyer

Priya Sharma

Company Secretary & Student.MBA

998 Points Posted on 04 February 2011

I too agree with the above given answers. You have to file a petition under section 397 & 398 of the companies act 1956 with CLB as it is clear from your situation that it is a case of Mismanagement.

Regards

Priya