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FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlier
involved in many illegal activities. The promoters furnished some false information and also suppressed
some material facts at the time of incorporation of the company. Some members of the public (not being
directors or promoters of the company) approached the National Company Law Tribunal (NCLT) against
the incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liability
of the members of the company shall be unlimited.
Given the above, advice on whether the above order will be legal and mention the precaution to be taken
by NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?
involved in many illegal activities. The promoters furnished some false information and also suppressed
some material facts at the time of incorporation of the company. Some members of the public (not being
directors or promoters of the company) approached the National Company Law Tribunal (NCLT) against
the incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liability
of the members of the company shall be unlimited.
Given the above, advice on whether the above order will be legal and mention the precaution to be taken
by NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?
Most Upvoted Answer
FAREB Limited was incorporated by acquisition of Fareb & Co., a partne...
Legal Aspects of NCLT Order Regarding Liability of FAREB Limited Members
Advice on the Legality of the NCLT Order
--------------------------------------------
Legal Validity:
The NCLT has the authority to direct that the liability of the members of a company be unlimited if deemed necessary. This is in accordance with the provisions of the Companies Act, 2013, which empowers the NCLT to take such actions in cases of suppression of material facts and furnishing false information during the incorporation of a company.
Precautions to be Taken by NCLT Before Passing Order
--------------------------------------------------------
Due Diligence:
NCLT must ensure that there is sufficient evidence to prove that false information was provided and material facts were suppressed at the time of incorporation of FAREB Limited.
Opportunity to Respond:
The members of the company should be given a fair chance to present their case and provide any evidence or explanations to counter the allegations made against them.
Legal Compliance:
NCLT must ensure that all procedures and legal requirements are followed before passing such a significant order that can have a lasting impact on the liability of the members of FAREB Limited.
In conclusion, while the NCLT has the authority to direct unlimited liability of the members of a company in cases of fraudulent activities, it is essential for NCLT to conduct a thorough investigation, provide a fair opportunity for the members to respond, and ensure compliance with legal procedures before passing such an order.
Advice on the Legality of the NCLT Order
--------------------------------------------
Legal Validity:
The NCLT has the authority to direct that the liability of the members of a company be unlimited if deemed necessary. This is in accordance with the provisions of the Companies Act, 2013, which empowers the NCLT to take such actions in cases of suppression of material facts and furnishing false information during the incorporation of a company.
Precautions to be Taken by NCLT Before Passing Order
--------------------------------------------------------
Due Diligence:
NCLT must ensure that there is sufficient evidence to prove that false information was provided and material facts were suppressed at the time of incorporation of FAREB Limited.
Opportunity to Respond:
The members of the company should be given a fair chance to present their case and provide any evidence or explanations to counter the allegations made against them.
Legal Compliance:
NCLT must ensure that all procedures and legal requirements are followed before passing such a significant order that can have a lasting impact on the liability of the members of FAREB Limited.
In conclusion, while the NCLT has the authority to direct unlimited liability of the members of a company in cases of fraudulent activities, it is essential for NCLT to conduct a thorough investigation, provide a fair opportunity for the members to respond, and ensure compliance with legal procedures before passing such an order.
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FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?
Question Description
FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?.
FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?.
Solutions for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? defined & explained in the simplest way possible. Besides giving the explanation of
FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.?, a detailed solution for FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? has been provided alongside types of FAREB Limited was incorporated by acquisition of Fareb & Co., a partnership firm, which was earlierinvolved in many illegal activities. The promoters furnished some false information and also suppressedsome material facts at the time of incorporation of the company. Some members of the public (not beingdirectors or promoters of the company) approached the National Company Law Tribunal (NCLT) againstthe incorporation status of FAREB Limited. NCLT is about to pass the order by directing that the liabilityof the members of the company shall be unlimited.Given the above, advice on whether the above order will be legal and mention the precaution to be takenby NCLT before passing order in respect of the above as per the provisions of the Companies Act, 2013.? theory, EduRev gives you an
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