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CMA Final · Corporate and Economic Laws · Accounts and Audit

The Tribunal has directed audit of the liquidator's accounts of Kaveri Ltd. Which statement is correct under the Companies Act, 2013?

The liquidator must have the audited accounts, or a summary, printed and posted to every creditor and every contributory. The Tribunal may dispense with this requirement in any case it deems fit, so the duty is not absolute.

  1. AThe liquidator must send a printed copy of the audited accounts or a summary to every creditor and contributory, unless the Tribunal dispenses with this in a case it deems fitCorrect
  2. BThe liquidator must send printed accounts to every creditor and contributory, and the Tribunal has no power to dispense with it
  3. COnly creditors are sent printed accounts; contributories may inspect them at the Registrar's office
  4. DThe Tribunal must audit the accounts in the manner prescribed by the Registrar, and cannot inspect the liquidator's books without a creditor's application

Explanation

After audit, the liquidator must cause the accounts or a summary to be printed and posted to every creditor and every contributory. The proviso lets the Tribunal dispense with this where it deems fit. The Tribunal also audits in such manner as it thinks fit and may at any time require production and inspect the books, so the other options are wrong.

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