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CMA Final · Corporate and Economic Laws · Accounts and Audit

The liquidator of Sundaram Textiles Ltd, a Government company in which both the Central Government and the State Government of Tamil Nadu are members, has had the accounts audited. Which statement is correct under the Companies Act, 2013?

The liquidator must forward a copy of the audited account to both the Central Government and the State Government, because both are members of the Government company. Forwarding to only one Government applies when only that Government is a member.

  1. AHe must forward a copy of the account to both the Central Government and the State GovernmentCorrect
  2. BHe must forward a copy only to the Central Government
  3. CHe must forward a copy only to the State Government
  4. DHe need not forward any copy to either Government as copies go only to the Tribunal and Registrar

Explanation

Section 294(5)(c) requires the liquidator to forward a copy to the Central Government and any State Government if both are members of the Government company. Options naming only one Government apply where only that Government is a member, under clauses (a) and (b).

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