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CMA Final · Corporate and Economic Laws · Accounts and Audit

A Government company in liquidation has both the Central Government and the State Government of Gujarat as members. Its liquidator's audited account is ready. Which statement is correct under the Companies Act, 2013?

The liquidator must forward a copy of the account to both the Central Government and the State Government, because both are members of the Government company. The duty to forward depends on membership, and delivery to the Registrar does not replace it.

  1. AThe liquidator must forward a copy to the Central Government only
  2. BThe liquidator must forward a copy to the State Government only
  3. CThe liquidator must forward a copy to both the Central Government and the State GovernmentCorrect
  4. DNo copy need be forwarded to either Government, since the Registrar receives one

Explanation

Where the account relates to a Government company, the liquidator forwards a copy to the Central Government if it is a member, to a State Government if it is a member, or to both if both are members. Here both are members, so both must receive a copy. Delivery to the Registrar does not replace this duty.

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