Mr. S who was KMP (Manager) of XYZ Ltd. retired on 12th May 201 On Examination of final accounts of company for year ended on 318, ROC found some serious irregularities in writing off of the huge amounts of bad debts and no satisfactory explanation was provided for the same from the company. In such a situation the Registrar of Companies wants some explanation from the company and Mr. Sharma. Can the ROC seek explanation from Mr. Sharma? Advice
No, Mr. Sharma cant be called upon, as he does not hold the position in company any more.
Mr. Sharma can be called upon within a period of one year from date of completion of his service.
Mr. Sharma can be called upon for necessary explanation within period of 180 days from the date of leaving his office through a written notice served upon him.
Mr. Sharma can be called on by Registrar by written notice served on him without time period limit.