Kindly help me to find the party which is responsible to the co. and on behalf of which co. functions ?
Here are some the parties to which the company definately does not belong to:-
1) Auditor- These are the first persons to escape their responsbility. In the recent Satyam fiasco when the news of 7,000 crore came auditors immediately gave a statement that the audit report cannot be relied upon due to limitations on scope of audit.
Till the date, when the words "auditors responsiblity is only to express an opinion bsaed on audit evidence availed" are not corrected, this breed will continue to enjoy their position as a third party to the company.
2) Shareholders- The so called "owners" of the co., are actually just speculators who have no interest in the perfomance. Whenever there is a bad news about the co.,they show their responsibility by selling the shares. Hardly any small investors have the knowledge about the compostion of the Board and in most cases not even about the business.
In my opinion their name should be shown in the Register of Speculator.
3) Board - This is the party on which the Ministry has imposed maximum restrictions wether on their appointment, remuneration, compostion, meetings ......(never ending list).
But it has been correctly said a human cannot be made to work sincerely & honestly by imposing restrictions on him.
So is the case with the board. These are the bunch of people who are in co. for making personal money. They are sufficiently equipped, for finding loopholes in law.
Does it mean co. in reality is a person who functions for himself !!!!!!
CAclubindia
