05 September 2013
A Person bought Gold Bar in the name of the company......for her daughter....later on he let's out on interest to other person...without any contract officially..can he do so....
07 September 2013
I know for that u need to have gold lending licence plus in MOA AOA u should have mentioned the same...plus u must pass board resolutions...consent of all other directors....i knw it is illegal...how do i complain to IT department.
01 August 2024
Investing in gold through a company, especially for personal purposes such as for a daughter, involves several legal and regulatory considerations. Here’s a breakdown of the issues and steps you can take if you suspect any misuse or non-compliance:
### **1. Legality of Buying Gold in Company Name for Personal Use:**
- **Business Purpose:** Companies are generally established for specific business purposes as outlined in their Memorandum of Association (MOA) and Articles of Association (AOA). Buying gold or investing in assets for personal purposes of a director or shareholder may not align with the company's stated business objectives unless explicitly stated.
- **Compliance:** If the gold is purchased in the company’s name, it should be for a business purpose that is permitted by the MOA and AOA. Personal use or investment for family members should be avoided as it can raise issues of misuse of company funds.
### **2. Lending Gold for Interest:**
- **Gold Lending License:** Lending gold or any asset for interest typically requires a license or regulatory approval, especially if it is considered a financial activity. This is regulated under laws pertaining to non-banking financial companies (NBFCs) and other financial institutions.
- **Company Compliance:** If the company is not registered or authorized to engage in gold lending activities, doing so would be against the regulations. It is necessary to have proper contracts, board resolutions, and compliance with the MOA and AOA.
### **3. Actions to Take:**
If you have evidence or strong reasons to believe that the company is involved in illegal activities such as unauthorized gold lending, you can take the following steps:
**A. Reporting to Authorities:**
1. **Income Tax Department (IT Department):** - **File a Complaint:** You can file a complaint with the Income Tax Department regarding the misuse of company funds or illegal activities. Provide all relevant details and evidence. - **Contact Details:** Reach out to the local IT department office or use their online grievance redressal mechanism if available.
2. **Registrar of Companies (ROC):** - **Lodge a Complaint:** Report to the Registrar of Companies about the misuse of company assets and any non-compliance with the MOA and AOA. The ROC can investigate the matter and take appropriate action.
3. **Legal Action:** - **Consult a Lawyer:** Seek legal advice to understand your rights and the proper procedures for filing a complaint or taking legal action. A lawyer can help draft formal complaints and represent you in legal proceedings.
**B. Documenting the Issue:**
- **Gather Evidence:** Collect all documents, contracts, board resolutions (or lack thereof), and any communication related to the gold purchase and lending activities. - **Prepare a Report:** Prepare a detailed report outlining the issues, including how the gold was purchased, the lending arrangements, and any evidence of unauthorized or illegal activities.
**C. Internal Company Actions:**
- **Board Meeting:** If you are a part of the company's board or management, call a board meeting to address the issue. Discuss the matter and record the proceedings. - **Resolutions:** Ensure that all decisions and actions are documented through official resolutions and meeting minutes.
### **Conclusion:**
Purchasing gold in a company name for personal purposes and lending it without proper authorization and documentation is generally illegal and against company law regulations. If you have evidence of such practices, you should report the matter to the relevant authorities, such as the Income Tax Department and Registrar of Companies, and seek legal advice for further action.
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