State the powers of the Registrar in regard to 'fraudulent application for removal of name' of the company from the Register of companies.
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2020
State the powers of the Registrar in regard to 'fraudulent application for removal of name' of the company from the Register of companies.
Answer & Explanation:
If it is found that an application by a company has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved be liable for the following: be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and be punishable for fraud in the manner as provided in section 447 of the Companies Act, 2013. The Registrar has the power to recommend prosecution of the persons responsible for the filing of a fraudulent application.
Topics: Company Closure
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