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CA Final EXAM Question

CA. Praveen Gupta (CA ) (346 Points)

15 June 2010

Can any body tell me

1. can CA become a Chairman of any company

2. Is shareholder right to see accounts of company?

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13 Replies

purvi (some) (240 Points)
Replied 15 June 2010

YES HE CAN BECOME... No probs...

but he at the same time cannot audit that companys accs....

HE CANNOT SEE THE ACCOUNTS AS SHARE HOLDER BUT HE WILL SEE ONLY THE ANNUAL REPORTS, MINUTES ETC...

EXPERTS PLS CORRECT ME IF WRONG.

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RAKESH (Almost CA) (2199 Points)
Replied 15 June 2010

yes agreed with some. but i think shareholder can see the accounts of the company..........

shinoj (ab) (1201 Points)
Replied 15 June 2010

1-Yes CA can become chairman provided he/firm not doing extrenal audit....

2-Shareholders as well as GENERAL PUBLIC CAN see accounts of PUBLIC COMPANIES coz they r required to publish-p&l/balance sheet..for private companies there r not such obligation for publication..but still shareholders can see accounts as share of profit is divided directly proportion to profit made.....

CA Tushar Lakhanpal (CA) (416 Points)
Replied 16 June 2010

CA Can become chairman

AND SHAREHOLDERS HAVE THE RIGHT TO SEE THE ACCOUNTS...

Ravi Prakash (Service) (38 Points)
Replied 16 June 2010

Ans1:- Yes CA can be chairman of a company provided he has taken permission specifically from the institute as its full time engagement in the profession other than Accountancy, Also he can not audit the accounts of that company.

Ans 2:- No shareholders have no statutory right to see the accounts of company, Only Board of Director have such right. However Article may provide such right to shareholders.

Incase Article is silent on this matters than Shareholders may apply to C.G or Court for inspection of account provided minimum no. of members /10 orv 100 Lower.

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CA Pintu Mishra (Chartered Accountant- Industry) (514 Points)
Replied 16 June 2010

1. yes, of course but he should have prior approval with icai. and should not adit the accounts of that company.

2.Shareholders can not see books of accounts as it will be problematic for company in case every member ask for inspection, however if majority of shareholders have doubts on doing anything wrong can apply for it, and they have right for annual report.

CA Abhiram Bharat. (Assistant Manager Taxation) (508 Points)
Replied 16 June 2010

.yes, an C.A. may be the member

.& at the same time he can access the books of accounts of the company during the normal working hours. but being a related party, he can not audit the concerned company.

regards-

Abhiram

CA Rahul Jain (Job) (148 Points)
Replied 16 June 2010

a member can not see the book of acoount until the there is seprately provison in the article

Chandan Singh (Professional) (270 Points)
Replied 16 June 2010

Mr. Some & Mr. Ravi Prakash is Right...

purvi (some) (240 Points)
Replied 16 June 2010

Guided by - sec 226 - disqualification of auditors

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Tarun (CA Final Student) (89 Points)
Replied 16 June 2010

Shareholder can see the books of accounts of the Co. :-

1. If it is conferred by Law or

2. Authorised by BOD or

3. Authorised by Company in General Meeting.

purvi (some) (240 Points)
Replied 17 June 2010

THERE IS NO SPECIFIC SECTION FOR SHARE HOLDER...

ITS GUIDED BY CO ACT 1956 AND SEBI ACT 1992 AS A WHOLE...

SOME BASIC RIGHTS ARE COVERED UNDER STANDARD LISTING AGREEMENT OF COMPANY.... THESE ARE AS FOLLOWS-

Under the Standard Listing Agreement entered into with the Stock Exchanges in India

As a shareholder, you enjoy certain rights under the listing agreement, which are as follows:

Appointment/ Re-appointment of Directors

In case of the appointment of a new director or re-appointment of a director you have a right to the following information:

A brief resume of the director;

Nature of his expertise in specific functional areas; and

Names of companies in which the person also holds the directorship and the membership of Committees of the Board of those companies.

Right to access the latest published financial information (SO NO ACCOUNTS).

Right to have the following information on corporate governance practices of the company

A brief statement on company’s philosophy on code of governance.

Board of Directors

Composition and category of directors such as promoter, executive, non-executive, independent non-executive, nominee director of financial institutions.

Attendance of each director at the Board meetings and the last Annual General Meeting.

Number of other Boards or Board Committees, he/she is a member or Chairperson of.

Number of Board meetings held and the dates on which held.

Audit Committee

Brief descriptttion of the terms of reference

Composition, name of members and Chairperson

Meetings and attendance during the year

Remuneration Committee

Brief descriptttion of terms of reference

Composition, names of members and Chairperson

Meetings and attendance during the year

Remuneration policy for the Board of directors

Details of remuneration paid to all the directors.

Shareholders’ Committee

Name of non-executive director heading the committee

Name and designation of compliance officer

Number of shareholder complaints received so far

Number not solved to the satisfaction of shareholders

Number of pending share transfers

General Body meetings

Location and time, where the last three Annual General Meetings were held.

Whether special resolutions were put through postal ballot in the previous year

Details of voting pattern.

Person who conducted the postal ballot exercise

Procedure for postal ballot

Disclosures

Disclosures on materially significant related party transactions i.e. transactions of the company of material nature, with its promoters, the directors or the management, their subsidiaries or relatives etc. that may have potential conflict with the interests of the company at large.

Details of non-compliance by the company, penalties, strictures imposed on the company by Stock Exchange or SEBI or any statutory authority, on any matter related to capital markets, during the last three years.

General Shareholder information

AGM: Date, time and venue

Financial Calendar

Date of Book closure

Dividend Payment Date

Listing on Stock Exchanges

Stock Code

Market Price Data: High., Low during each month in last financial year

Performance in comparison to broad-based indices such as BSE Sens*x, CRISIL index etc.

Registrar and Transfer Agents

Share Transfer System

Distribution of shareholding

Dematerialization of shares and liquidity

Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity

Plant Locations

Address for correspondence

Trading of Shares in Physical Form

The company is required to give adequate notice to the seller before registering the transfer of shares. The share transfer committee of the company should meet as often as required to approve share transfers.

Depository and dematerialisation

Share transactions (like sale or purchase and transfer) in the electronic form can be effected in a much simpler and faster way. After confirmation of sales/purchase transaction from your broker, you should approach your Depository Participant [DP] with a request to debit/credit your account for the transaction. The DP will immediately arrange to complete the transaction by updating your account. There is no need for separate communication to the company to register the transfer.

sunil (article) (47 Points)
Replied 22 June 2010

can be a chairman but canot audit and shareholder can see the anual accounts in agm which should be circulated in agm but shareholder canot enter day to day transactions