INSPECTION OF COMPANY REGISTERS – HOW LISTED COMPANIES ARE TARGETTED BY ANIL KUMAR PODDAR
Anil Kumar Poddar – By holding one share in almost all the Listed Companies, Poddar is used to harass the companies with the inspection of documents.
Anil Kumar will send the following letter to his targeted listed company.
As per Company law provision, the company has to give him the documents but if the company published any documents online like in MCA portal, BSE/NSE website, or in the company’s website, then, the company may ask Poddar to refer the same.
What the Companies Act Says for Inspection?
Company registers are open for inspection by members or creditors during the business hours of the company without paying any fees and for others, by paying fees and the company may place reasonable restriction through the provisions in its Articles.
Section 171 of the Company Act 2013 Speaks about the Members’ right to inspect.
The register kept under sub-section (1) of section 170,—
a)shall be open for inspection during business hours and the members shall have a right to take extracts there from and copies thereof, on a request by the members, be provided to them free of cost within thirty days; an
b) shall also be kept open for inspection at every annual general meeting of the company and shall be made accessible to any person attending the meeting.
2. If any inspection as provided in clause (a) of sub-section (1) is refused, or if any copy required under that clause is not sent within thirty days from the date of receipt of such request, the Registrar shall on an application made to him order immediate inspection and supply of copies required there under.
Other Registers Available for Inspection
P REGISTER OF CHARGE: (Section 85 read with Rule-10 of Company (Registration of charges) Rules, 2014
ENTRY IN REGISTER OF BENEFICIAL INTEREST UNDER SECTION 89 OF THE CA 2013
MAINTENANCE AND INSPECTION OF DOCUMENT IN ELECTRONIC FORM
BOOKS OF ACCOUNTS:
REGISTER OF DIRECTORS & KEY MANAGERIAL PERSONNEL: (Section 170(1) and Rule 17 of the Companies (appointment and Qualification of Directors) Rules, 2014
REGISTER OF LOAN INVESTMENT AND GUARANTEE:
REGISTER OF INVESTMENT MADE BY A COMPANY HELD NOT IN ITS NAME: (Section 187(2) and (d)
KEEPING CONTRACT OF SERVICE WITH MANAGING OR WHOLE-TIME DIRECTOR
Case Laws Barring Anil Kumar Poddar from
Harassing Listed Companies in India
In Mr. Anil Kumar Poddar v. Bonanza Industries Limited, the Mumbai Bench of the Company Law Board (‘CLB’), through its order dated April 16, 2015 dismissed the application of a shareholder who demanded copies of records of a company and sought inspection of the register, minutes, annual returns, and the like, on the ground that such an application was mala fide and frivolous.
Phillips Carbon Black Ltd. & Ors vs Anil Kumar Poddar & Anr on 7 May, 2010, applicant was stripped from carrying out his rights as a shareholder along with his accomplices by the Calcutta High Court.
In "Anil Kumar Poddar Vs Alka India Ltd." the CLB Mumbai bench on January 28, 2014 dismissed the petition by Poddar on the grounds that the application was baseless and the applicant was in the habit of making such frivolous applications.
In Anil Kumar Poddar v Reliance Industries , CLB , Mumbai held that Members having shareholding less than stipulated in section 188 of CA, 1956 cannot seek resolution to be included for circulation.
In Wipro Limited v Anil Kumar Poddar , CLB in 2010 turned down the request of circulation and inspection by the respondent.
Company Secretaries in the listed companies should not bow down to the pressures exerted by the persons like Anil Kumar Poddar and should handle the issue more meticulously by approaching the NCLT , if there is a need.