STATUS OF BIFR COMPANY.
vikas
(Querist) 18 September 2008
This query is : Resolved
DEAR SIR,
I AM A REGISTERED HOLDER OF 10% SHARES IN A PUBLIC LIMITED COMPANY. I HVE ALSO GIVEN LOAN OF RS 7 LACS TO THAT COMPANY FROM LAST 10 YEARS, AND THAT IS BEING SHOWED IN THEIR LATEST BALANCE SHEET FILED.BUT SOME DAYS BACK I HAVE COME TO KNOW THAT THEY HAVE APPLIED FOR BIFR.
NOW I WANT TO ASK U SOMETHING.
1)THAT HOW CAN I GET MY LOAN MONEY BACK .
2) DOES I HAVE ANY RIGHT IN THE COMPANY AS THEY DONT ALLOW ME TO VISIT IT NOR THEY SEND ME ANY COPY OF BALACE SHEET OR AGM.
3)THEY HAVE ALREADY PAID ALL THE LOANS OF BANKS AND FINANCIAL INST. BUT ARE SHOWING LOSSES WHICH ARE NOT ORIGINAL.
4)PLEASE TELL ME CAN I BUY THIS COMPANY AND IF YES WHAT IS THE PROCEDURE.
KINDLY DO THE NEEDFUL AS I AM IN NEED OF IT.
WAITINMG FOR REPLY
VIKAS
Manish Singh
(Expert) 18 September 2008
For voluntary winding up with consent of the shareholders, they must hold a general meeting and the resolution for winding up can be passed only if at least 3/4th members vote in favour.
Since you are holding 10 % shares, they should have intimated you for every meeting.
Anyways dont worry, since you are holding 10 % shares yopu can file petition under Sec 397/ 398 of the companies act at the Comapny Law Board. Your greivances shall be properly heard.
Even if it gets wound up, since you are registered creditor you shall be paid off the debt given by you by the liquidator.
Manish Singh
(Expert) 19 September 2008
Okay, you have explained that it is a BIFR process.
then even dont worry, BIFR shall firstly take inot account all aspects of the company and will try to revive it.
BIFR never issue recommendations of winding up without firstly going for every possibilty to revive the company and its a lengthy procedure.
Even if BIFR recommends the winding up, the High Court SHALL appoint a liquidator and every creditor is taken care of by the liquidator.
