Companies Act Section 294 — Audit of Company Liquidator’s accounts
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) requires the Company Liquidator to keep proper and regular books of account, including records of all receipts and payments, in the form and manner that is prescribed by rules.
Sub-section (2) requires the Company Liquidator to present to the Tribunal an account of receipts and payments at times that are prescribed, but at least twice each year during the liquidator's tenure. This account must be in the prescribed form, submitted in duplicate, and verified by a declaration in the prescribed form and manner.
Sub-section (3) states that the Tribunal will arrange for the accounts to be audited in whatever manner it considers appropriate. For the audit, the Company Liquidator must provide the Tribunal with any vouchers and information the Tribunal requires, and the Tribunal may at any time ask to see and inspect any books of account kept by the liquidator.
Sub-section (4) provides that once the company's accounts have been audited, the Company Liquidator must file one copy with the Tribunal and deliver the other copy to the Registrar. This copy with the Registrar is open for inspection by any creditor, contributory, or interested person.
Sub-section (5) deals with accounts that relate to a Government company. Under clause (a), if the Central Government is a member of the Government company, the Company Liquidator must forward a copy of the account to the Central Government. Under clause (b), if a State Government is a member, the copy must be forwarded to that State Government. Under clause (c), if both the Central Government and a State Government are members, the copy must be forwarded to both.
Sub-section (6) requires the Company Liquidator to have the audited accounts, or a summary of them, printed and to send a printed copy by post to every creditor and every contributory. However, the Tribunal may choose to waive this requirement in any particular case if it considers it appropriate to do so.
Official Text
(1) The Company Liquidator shall maintain proper and regular books of account including accounts of receipts and payments made by him in such form and manner as may be prescribed.
(2) The Company Liquidator shall, at such times as may be prescribed but not less than twice in each year during his tenure of office, present to the Tribunal an account of the receipts and payments as such liquidator in the prescribed form in duplicate, which shall be verified by a declaration in such form and manner as may be prescribed.
(3) The Tribunal shall cause the accounts to be audited in such manner as it thinks fit, and for the purpose of the audit, the Company Liquidator shall furnish to the Tribunal with such vouchers and information as the Tribunal may require, and the Tribunal may, at any time, require the production of, and inspect, any books of account kept by the Company Liquidator.
(4) When the accounts of the company have been audited, one copy thereof shall be filed by the Company Liquidator with the Tribunal, and the other copy shall be delivered to the Registrar which shall be open to inspection by any creditor, contributory or person interested.
(5) Where an account referred to in sub-section (4) relates to a Government company, the Company Liquidator shall forward a copy thereof—
(a) to the Central Government, if that Government is a member of the Government company; or
(b) to any State Government, if that Government is a member of the Government company; or
(c) to the Central Government and any State Government, if both the Governments are members of the Government company.
(6) The Company Liquidator shall cause the accounts when audited, or a summary thereof, to be printed, and shall send a printed copy of the accounts or summary thereof by post to every creditor and every contributory:
Provided that the Tribunal may dispense with the compliance of the provisions of this sub-section in any case it deems fit.