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CMA Final · Corporate and Economic Laws · Accounts and Audit

A Government company is in liquidation. Its shareholders are the Central Government and the State Government of Gujarat. After audit, to whom must the Company Liquidator forward a copy of the accounts, in addition to the filing requirements with the Tribunal and Registrar?

The liquidator must forward a copy of the audited accounts to both the Central Government and the State Government. The Act requires a copy to go to each Government that is a member of the Government company, and here both are members.

  1. AOnly the Central Government
  2. BOnly the State Government of Gujarat
  3. CBoth the Central Government and the State Government, as both are membersCorrect
  4. DNeither, as forwarding is at the Tribunal's discretion

Explanation

Where the accounts relate 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 receive a copy. Choosing only one ignores the 'both' limb.

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