Description:
There should be proper application of mind by RoC in deciding whether a person to be implicated is an ‘officer in default’ by examining the Annual Return, Form 32 and Director Identification Number (DIN) database available. Wrongful prosecution should be avoided. Wherever the Registrar of Companies has doubt as to whether director/officer can be held liable, he should refer to the Regional Director, who shall guide RoC in such matter. All pending cases against directors of companies must be relooked at and a report must be sent to Regional Director with specific recommendation, in case the proceedings are proposed to be discontinued.
Source:
1. www.tpcc.in
2. The Tax Referencer .Volume121. Issue No.4, 26 Sept. 2011, Page No.127.
Our Comment:
The ROC has to decide “Officer in default” by examining the Annual Return, Form32, DIN. Every pending case has to be re-looked. In case of doubt the ROC can take the guidance of Regional Director.
