1982 (8) TMI 174

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....gement of the company. It has been alleged that the company is not at all functioning and that the company is not holding annual general meetings or any other meetings. The petitioners have produced notices received by them in their capacity as directors of the company in respect of prosecutions launched by the Registrar of Companies. The petitioners have stated that though their names are shown as directors of the company in the record of the Register of Companies, in fact no meetings of the board of directors have been held, that they are totally kept out of the management and that on account of the mismanagement of the company by respondents Nos. 1 and 2, they are being prosecuted as directors of the company for no fault of theirs. The p....

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....otice was given in respect of reconstruction of the statutory records of the company including the register of members. Mr. Barve, learned advocate for the respondents, read out the public notice which is referred to in this paragraph. This public notice has nothing to do with the reconstruction of the company's records. It is a public notice given in respect of an alleged theft of 24 share certificates. In these circumstances, no reliance can be placed on such a register of members of the company prepared after the filing of the present petition. The petitioners have produced in court photostat copies of receipts issued in the years 1977 and 1978 and signed by the second respondent, showing various amounts received by her from the petit....

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....d not pay for even this share and hence the allotment was cancelled. Mr. Barve submitted that under the articles of association of the first respondent-company it is not necessary for a director to hold any shares in the company. He has, therefore, submitted that Form 32 does not support the petitioners' claim that they are members of the company. If it was not necessary to have any qualification shares for becoming directors, it is difficult to understand why the company offered such qualification shares. Mr. Barve has further submitted that the petitioners were only appointed as additional directors and they ceased to hold office as directors after September 30, 1977. The company has, however, failed to produce any record which would s....