18 November 2010
Point No.1: An "A" was an Executive Direcot of a private limited company having some shares in his name which is not listed company. Due to some differences "A" had to leave the said company. While "A" was with the said company the Managing Director took blank signature on share transfer forms with all the shareholders including "A"'s signature and kept with him. Immediately after "A" left the company, with out "A"'s knowledge the shares were transferred in another employee name. "A" came to know that the company's auditor (chartered accountant) signed in the share transfer form as a witness. Can a chartered accountant be witness for share transfers? If the answer is NO, then what type of action "A" can take against him. Point No.2: The same chartered accountant after I left the above company, with the support of the management, filed a criminal case against me in 2005 without any proper reason only to harass "A". Recently (after 5 years) that case was acquitted on the grounds of benefit of doubt. For this case, "A" had to visit the court about 40 hearings and spent lot of money on advocates, police and other expenses by loosing income on those days. Since "A" won the case, can "A" take any action action that chartered accountant and if so which law is applicable and before which forum "A" can file/refer the case.
28 December 2010
Point 1. Any adult person can witness a share transfer form, it can be CA, doctor or anyone. So you wont be able to take any action. It will be difficult to prove that A did not sign when the CA witnessed.
Point 2. If you have a strong case to prove that CA was harassing A, then you can approach discriplinary committee of Insitute of Chartered Accountants of India and report the case for action against the CA. Action, if successful will include revocation of his certificate of practice temporarily or permanently or simply reprimanding him.
CAclubindia
