Some officers from Registrar of Companies (ROC), Mumbai, Maharashtra carried out a physical verification of the premises of a Company registered under Companies Act and found that there is no business operations being ca
CS Executive · Setting up of Business Entities and Closure · PYQS · June 2021
Some officers from Registrar of Companies (ROC), Mumbai, Maharashtra carried out a physical verification of the premises of a Company registered under Companies Act and found that there is no business operations being carried at that place. Whether ROC is empowered to carry out any physical verification under the Companies Act, 2013. Also brief whether ROC, based on such physical verification can initiate suo moto action to remove the name of the company from the Register of Companies maintained by his office.
Answer & Explanation:
There are situations where ROC can remove name of the company suo moto. Among those situations, one situation is that the Company is not carrying on any business or operations as revealed after the physical verification carried out under section 12 of the Companies Act, 2013. Hence, the ROC's action of removing name suo moto is justified. ROC is empowered to initiate action against the Company after following the principle of natural justice i.e. after giving sufficient notice, he can proceed for strike off of the Company under Section 248 of the Companies Act, 2013.
Topics: Company Law
Related Questions in this Topic
- You have been appointed as liquidator by the National Company Law Tribunal (NCLT) in the matter of winding up of ABC Ltd...
- Discuss the compliance requirements to retain the status of a dormant company.
- Differentiate between 'Winding Up' and 'Dissolution'.
- Fresh Water Ltd. has not been carrying on any business during the last two financial years. The company wants to get the...
- The registered office of RMC Ltd. is situated at Mumbai. There are 70 shareholders in the company. Out of them, 10 share...