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Sidhhi   13 July 2025

Retrieval of blocked funds?

My friend invested 1Crores in the then profitable tiles manufacturing unit in Morbi- Gujarat for 10% shares.

He is based in Kerala and the management is not providing true profit and loss statements nor paying mutually agreed monthly amount since 2021 saying unit is in loss.

Please guide and suggest a way out as he just wants to salvage the money invested. TIA

 

 



 1 Replies

T. Kalaiselvan, Advocate (Advocate)     13 July 2025

A shareholder owning 10% or more of a company's shares has the right to request and receive copies of the company's financial accounts, including the balance sheet, profit and loss account, and auditor's report. This right is usually exercised by submitting a formal request to the company's secretary or a designated officer. The company is legally obligated to provide these documents to the shareholder, usually within a reasonable timeframe. It's always a good idea to check the company's Articles of Association, as they may outline specific procedures for accessing company information. If a company refuses to share account details with a shareholder, the shareholder can file a complaint with the Ministry of Corporate Affairs (MCA) or through the Securities and Exchange Board of India (SEBI) platform, SCORES. The complaint should be formally lodged, detailing the issue and relevant information, and can be submitted online.  If the issue remains unresolved, you may consider further legal options, such as approaching the National Company Law Tribunal (NCLT) under provisions related to oppression and mismanagement, or seeking legal advice for other remedies. 


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