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Shreya Arora (Company Secretary )     15 July 2013

Criminal case filed by a shareholder against the company

A shareholder had requested for the copies of the minutes of the AGM, Register of Investment,  Register of Contracts &  Annual Return files with ROC. The Company failed to provide the same and as a result the shareholder filed a criminal case against the company for violation of scertion 163, 196, 301 & 372A of the Compnies Act, 1956.

My question is whether the shareholder can file criminal case gainst the company for violation of companies act?

Thanks in Advance



Learning

 4 Replies

vivek malhotra (Advocate)     15 July 2013

Yes, he has the valid defence. Its a Ltd. Company and its share holders and got the right to demand the same.

Ashok, Advocate (Lawyer at Delhi)     15 July 2013

In fact, Sections 163, 196, 301 and 372A of the Companies Act, 1956, give rights to the shareholders of the company to inspect / demand copies of the records mentioned in those respective sections. Failure to allow such inspection or to provide copies (as mentioned in these sections) is specifically made liable for penalty under these sections vide 163(5), 196(3), 301(5) and 372A(6), respectively. Therefore, the shareholder (member) is entitled to file a complaint if these provisions are not complied with by the company when such shareholder makes a demand in accordance with these provisions. This is his statutory right.

Ashok, Advocate (Lawyer at Delhi)     15 July 2013

In fact, Sections 163, 196, 301 and 372A of the Companies Act, 1956, give rights to the shareholders of the company to inspect / demand copies of the records mentioned in those respective sections. Failure to allow such inspection or to provide copies (as mentioned in these sections) is specifically made liable for penalty under these sections vide 163(5), 196(3), 301(5) and 372A(6), respectively. Therefore, the shareholder (member) is entitled to file a complaint if these provisions are not complied with by the company when such shareholder makes a demand in accordance with these provisions. This is his statutory right.

Shreya Arora (Company Secretary )     15 July 2013

i wanted to understand why is it a criminal case?? and why dint the shareholder file a civil suit??

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