233 state-run firms found violating Companies Act

Friday, 31 July 2009, 02:40 Hrs
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New Delhi: The government Thursday said 233 state-run firms had violated the Companies Act by not appointing a whole-time company secretary.

"Every company having a paid-up share capital of 5 crore or more is required to appoint a whole-time company secretary," Minister for Corporate Affairs Salman Khurshid told the Lok Sabha.

"Normally, PSUs (public sector undertakings) are unable to appoint company secretary due to their financial position and non-availability of suitable company secretaries," the minister said in a written reply.

The registrars of companies have been empowered to take suitable action against the defaulting companies.

Only 160 out of 419 central government-run firms made profits in 2007-08, contributing 23,857.88 crore (238.58 billion/$4.86 billion) as dividend to the exchequer.

Recently, in its annual report, the Comptroller and Auditor General of India had stated that of the 419 state-owned firms, equity investment in 72 undertakings had been completely wiped out due to successive losses, eroding the net worth by 78,665 crore.
Source: IANS
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