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CS Executive · Company Law and Practice · Members and Shareholders

Meera, a shareholder of Himalaya Beverages Ltd., finds that the company has defaulted in a provision of the Companies Act, 2013 and wants prosecution of the company and its officers. As per the Act, which statement on who may file the complaint is correct?

A court may take cognizance of an offence by a company or its officer on the written complaint of the Registrar, a shareholder or a member, or a person authorised by the Central Government. Hence Meera, as a shareholder, can file a written complaint.

  1. AA shareholder or a member of the company may file a written complaint on which the court can take cognizanceCorrect
  2. BOnly the Registrar can file such a complaint; shareholders have no such right
  3. COnly a creditor of the company can file the complaint
  4. DA shareholder can file only an oral complaint before the court

Explanation

The Act bars courts from taking cognizance of offences by a company or officer except on written complaint of the Registrar, a shareholder or a member, or a person authorised by the Central Government. So Meera's written complaint is valid. Option B is wrong because shareholders are expressly named.

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