The Board of Directors of BIJI Private Limited made an application to the Registrar of Companies under section 248(2) of the Companies Act, 2013 for removal of name of the Company. The Board submitted an affidavit that C
CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · December 2019
The Board of Directors of BIJI Private Limited made an application to the Registrar of Companies under section 248(2) of the Companies Act, 2013 for removal of name of the Company. The Board submitted an affidavit that Company has no pending liabilities. However, it was later found that few amounts were still payable to creditors. What penalties can be levied under the Companies Act, 2013 for such an application?
Answer & Explanation:
As per section 251(1) of the Companies Act, 2013 where it is found that an application by a company under section 248(2) 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 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. Further, Section 251 (2) of the Companies Act, 2013 states that, the Registrar may also recommend prosecution of the persons responsible for the filing of an application under Section 248(2) of the Companies Act, 2013. Based on above provisions, the Board of Directors of BIJI Private Limited will be liable to penal provisions as per Section 251 of the Companies Act, 2013.
Topics: Striking Off Name of Company
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