Company Secretary of Pumpkin Ltd. has made following entries into Register of members, debenture holders and other security holders on happening of certain events : Event Date of event Date on which entry was made Allotm
CS Executive · Company Law · PYQS · June 2022
Company Secretary of Pumpkin Ltd. has made following entries into Register of members, debenture holders and other security holders on happening of certain events : Event Date of event Date on which entry was made Allotment of debentures 11th November, 2021 20th November, 2021 Forfeiture of shares 15th November, 2021 20th November, 2021 Issue of duplicate share certificates 10th November, 2021 24th November, 2021 Decide on the validity of the entries made by the Company Secretary in light of the provisions of the Companies Act, 2013.
Answer & Explanation:
Following are the relevant provisions regarding entries in the register of members, debenture holders and other security holders as contained in Rule 5 of the Companies (Management and Administration) Rules, 2014: The entries in register of members shall be made within seven (7) days of approval of allotment or transfer of shares, debenture or other securities. Entry shall be made within seven (7) days in case of forfeiture or issue of duplicate or new share certificates after the approval of board or committee. Applying the above rules, it can be said that entries related to allotment of debentures, issue of duplicate share certificates and forfeiture of shares shall be made within period of seven (7) days. In the present case, the entries for allotment of debentures and issue of duplicate shares are made beyond the period of seven (7) days and hence not in order. Whereas the entry related to forfeiture of shares is made within seven (7) days and the same is in order.
Topics: Registers and Returns
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