Ministry of Corporate Affairs (MCA) has observed that some listed companies have shown abnormal figure of their shareholders in their Annual Return (e-form no. 20B) filed with the Registrar of Companies.
It appears that the signatories of e-form 20B of above companies including certifying practicing professionals have not verified the figures of number of shareholders from the records of the company. It can also be inferred that by putting figure of only 1 (one shareholder) in a listed company, the practicing professionals have not discharged their duties prudently and are liable for professional misconduct.The signatory Directors and company secretaries of these companies are also liable for furnishing wrong information in the Form.
The Regional Directors have been directed to examine the above lapses on the part of companies and by practicing professionals and to furnish their report to the Ministry for initiating further action in the matter.