Under Company Law, there are provisions under which, a criminal case can be filed against Directors of Company for making False Claims, giving false informations in PROSPECTUS.
Because on basis of such prospectus, the share holders and investors invest in companies. Sometimes they feel they are duped and cheated.
But such cases should be filed at earliest.
Sometimes it takes years for shareholders to find that the company is not using funds for purpose set out in prospectus.
The Limitations for filing complaint starts from the DATE OF KNOWLEDGE OF FRAUD or FALSE STATEMENT IN PROSPECTUS for purpose of filing criminal case under Sec. 63, 628 of Companies Act as per several decided cases. The relevant case laws should be checked before filing a complaint.
Haresh Raichura
11/11/2014
Copyright : Haresh Raichura 2014. All Rights reserved.
