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CS Executive · Company Law and Practice · Annual Report - Concepts

Kaveri Power Ltd is a Government company in which the Central Government holds no shares; only the State of Odisha is a member, and the company is now in liquidation. Which statement is correct?

The State Government must prepare the annual report and lay it before its Legislature with the audit report and CAG comments. Section 395(2) applies these provisions, so far as may be, to a Government company in liquidation, so liquidation gives no exemption.

  1. AThe State Government must cause the annual report to be prepared and laid before its Legislature, as sections 394 and 395 apply to a Government company in liquidation so far as may beCorrect
  2. BNo report is needed because a company in liquidation is exempt
  3. CThe Company Liquidator must lay the report before Parliament
  4. DThe Tribunal must prepare the annual report under section 288

Explanation

Section 395(1) places the duty on the State Government where the Central Government is not a member, and requires laying before the State Legislature. Section 395(2) applies sections 394 and 395, so far as may be, to a Government company in liquidation. Section 288 concerns the liquidator's periodic reports to the Tribunal and is a different matter.

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