CLARIFICATION ON MARKING A COMPANY AS HAVING MANAGEMENT DISPUTE BY RoCs
Marking a company as having management dispute by Registrar of Companies under MCA-21 system
GENERAL CIRCULAR NO. 19/2011, DATED 2-5-2011
In the present electronic MCA-21 system, there is a facility with the Registrar of Companies to mark a company "marked as having management dispute" on the basis of complaints received in his office. This marking creates an alert and the documents are not approved and remain in the registry as work in process till it is demarked by the Registrar. In order to bring uniformity of practices by all Registrar of Companies it is clarified that the Registrar of Companies shall use this facility as under: -
(i) The Registrar of Companies shall mark a company as having management dispute in only those cases where the court or Company Law Board has directed to maintain the status quo with reference to any e-forms including status of Directors in the company, or
(ii) The Court or Company Law Board has granted any injunction or stay in taking the document on record and Registrar of Companies is a party in such court cases and/or the directions have been issued to the Registrar of Companies.
(iii) In other matter, where the Registrar of Companies in not a party and such orders have been passed and has not been served to the Registrar of Companies, it is for the parties to comply to such orders and in case of non-compliances, the law shall take its own course.