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CS Executive · Company Law and Practice · Accounts and Auditors

The Tribunal is hearing an application to re-open the accounts of Bharat Agro Ltd. before passing an order under section 130, the Tribunal must do which of the following?

Before passing an order, the court or Tribunal must give notice to the Central Government, Income-tax authorities, SEBI or any other concerned statutory body or person concerned, and must take their representations into consideration. Registrar approval or shareholder consent is not a requirement.

  1. APass the order ex parte to avoid delay
  2. BGive notice to the Central Government, Income-tax authorities, SEBI or other concerned regulatory body or person concerned, and consider their representationsCorrect
  3. CObtain prior approval of the Registrar of Companies
  4. DSeek the consent of the majority of shareholders

Explanation

The proviso to section 130(1) requires the court or Tribunal to give notice to the Central Government, Income-tax authorities, SEBI or other statutory regulatory body or authority concerned, or any other person concerned, and to consider their representations before passing the order. Shareholder or Registrar approval is not required.

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