Page 118 - DCOM106_COMPANY_LAW

Unit 8: Membership in a Company

If default is made in filing the annual return, the company and every officer in default is liable Notes
to be fined up to 500 per day during the period of default.

Self Assessment

State whether the following statements are true or false:
9. It is not mandatory for a company to maintain a register of members.
10. A register of members remain open for inspection by its members for at least two hours
every day except when the register is closed.
11. A company cannot close its register of members for more than 45 days in a year.
12. At any one time, the company cannot close its register of members for more than 30 days.
13. A company cannot transfer shares during the period when the register of members is
closed.

Case Study Client and Company Relations

eepak, a client of City Limouzines India Ltd., received a cheque of amount
6000 dated 2-Sep-2009 from City Limouzines India Ltd, and deposited same
Dcheque on 7-Sep-2009 in his Bank, which bounced with narration “Insufficient
Balance”.
He called on City Limouzines India Ltd., help line regarding same, but did not get any
satisfactory response from help line, He called on “Toll Free/24X7 Helpline: 23814792”.
At 2:16 PM on 12-Sep-2009, a lady picked the call and she didn’t show any interest to
resolve his query/concern, she hanged the phone stating that “We will dispatch a letter
after 20th Sep then check.”
Deepak states that, as per his knowledge and as per company websites “City Limouzines”
India Ltd. is an ISO approved company. He is unable to understand how a cheque of
amount 6000 can get bounced with narration “Insufficient Balance”? He sent mails
regarding same on given e mail ID “info@citylimouzines.com” but till date, has not heard
from the company”.
It is a very serious case; if company is indulging in Fraud, as it will impact all investors.

He lodges a complaint with the consumer court requesting them to take legal action
against City Limouzines India Ltd.
Questions

1. Analyse the legal actions which should be taken by the Consumer court for the
protection of Investors. (Hint: recall consumer protection act again)
2. What penalties should be forced on the company?

8.10 Summary

Every other person who agrees in writing to become a member of a company and whose
name is entered in its register of members, shall be a member of the company.

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