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CS Professional · Compliance Management, Audit and Due Diligence · Non-Compliances, Penalties and Adjudications

A shareholder of Meera Pharma Ltd wishes to prosecute the company's officers for an offence under the Companies Act, 2013. Which statement correctly reflects the law on how the court takes cognizance?

Cognizance requires a written complaint by the Registrar, a shareholder or member of the company, or a person authorised by the Central Government. The public cannot complain orally, and a Special Court may take cognizance without committal of the accused.

  1. AThe court may take cognizance on a complaint in writing by the Registrar, a shareholder or member, or a person authorised by the Central GovernmentCorrect
  2. BThe court may take cognizance on an oral complaint by any member of the public
  3. COnly the Registrar may complain; a shareholder has no standing
  4. DCognizance requires the accused first to be committed to the Special Court by a Magistrate

Explanation

No court takes cognizance of an offence alleged against a company or its officer except on the written complaint of the Registrar, a shareholder or member, or a person authorised by the Central Government. Also, a Special Court may take cognizance without the accused being committed to it for trial, so the commitment option is wrong.

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