Page 28
RECTIFICATION OF REGISTER OF MEMBERS [SECTION 59]
The person aggrieved, or any member of the company, or the company may appeal to the Tribunal, or to a competent court outside India, specified by the Central Government by notification, in respect of foreign members or debenture holders residing outside India, for rectification of the register in following circumstances –
(i) If the name of any person is without sufficient cause entered in the register of members of a company; or
(ii) If the name of any person after having been entered in the register is without sufficient cause omitted; or
(iii) If a default is made or unnecessary delay takes place in entering in the register, the fact of any person having become or ceased to be a member.
The tribunal after hearing the parties, may either dismiss the appeal or by order –
(a) Direct that the transfer or transmission shall be registered by the company within a period of ten days of receipt of the order; or
(b) Direct rectification of the register or record of depository and may, in case of register, also direct the company to pay damages sustained by party aggrieved.
The provisions of this section shall not restrict the right of a holder of securities, to transfer such securities and any person acquiring such securities shall be entitled to voting rights unless the voting rights have been suspended by an order of the Tribunal.
Where the transfer of securities is in contravention of any of the provisions of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India Act, 1992 or this Act or any other law for the time being in force, the Tribunal may, on an application made by the depository, company, depository participant, the holder of the securities or the Securities and Exchange Board, direct any company or a depository to set right the contravention and rectify its register or records concerned.
If any default is made in complying with the order of the Tribunal under this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with both.
Please continue to next page of this post.
AishMGhrana 