Taking action against a chartered accountant
n v sudhakar
(Querist) 17 November 2010
This query is : Resolved
Point No.1: I was an Executive Direcot of a private limited company having some shares on my name which is not listed company. Due to some differences I had to leave the said company. While I was with the said company the Managing Director took blank signature on share transfer forms with all the shareholders including my signature and kept with him. Immediately after I left the company, with out my knowledge the sharges were transferred in another employee name. I 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 I 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 me. Recently (after 5 years) that case was acquitted on the grounds of benefit of doubt. For this case, I 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 I won the case, can I take any action action that chartered accountant and if so to whom I can refer the case.
N V SUDHAKAR
Khaleel Ahmed Mohammed
(Expert) 17 November 2010
Point No.1:- Any body may be the witness who is competent as per Indian contract act.
Point No.2:- you can file a compensation case in this regard.
Swaroop Godbole
(Expert) 17 November 2010
witness to the share transfer for is not witnessing the transcation but just idntifing the signature. law prescribes that an auditor shall not take part in any type of business or administration of the company. otherwise the auditor is guilty of professional misconduct and can be sued before discpl. committee of the ICAI. he will have to pay fine + he might loose his membership and certificate of practice.
Further you can sue company, directors, and such auditors for damages and defamation.
further you can challnge the alleged transfer of shares easily on ground of absence of consideration as you have not received the price of shares and claim your membership, you can easily challenge the removal of you from directorship and claim back the same for going into the picture of the COMPANY again.
Uma parameswaran
(Expert) 18 November 2010
After you left from the office only the transfer has made .so you can challenge.
