Section 274 Of Companies Act, 2013

Introduction

A statement of affairs is a legal document that lists a company's or individual's assets and liabilities, usually produced when the company or individual declares bankruptcy. It is generally prepared by the liquidator of the company or by an appointed professional. SOA basically shows the current financial status of the company. Under section 272(5) of the act, it is stated that the company while filing a winding-up petition to the Tribunal, requires to attach a statement of affairs along with it which should be duly certified by the chartered accountant in practice.

Section 274: Directions for filing statement of affairs

This provision of the act states the following:

1. If the petition for winding-up of the company is filed by any other person like ROC, Central government, State government, etc., other than the company, the Tribunal will direct the company to raise objections (if any) and file its statement of affairs within 30 days of the order. The Tribunal may grant the extension of 30 days in case of exigency or special circumstances.

2. If the company fails to abide by the order and don not submit its statement of affairs within the time limit provided by the Tribunal, then the company will have no right to oppose the petition and shall be liable for the punishment.

3. The directors and other officers of a company for which the Tribunal has issued a winding-up order under clause (d) of sub-section (1) of section 273 must submit, at the expense of the company, the company's completed and audited books of account up to the date of the order to such liquidator and in the manner specified by the Tribunal within thirty days of the order.

4. Punishment for not filing the statement of affairs the company will be liable for: a) Imprisonment for a term which may extend to six months, b) Or fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, c) Or both.

Note: In case of imprisonment, cognizance has to be given before the special court only then the special court will come into action, and then it will determine the final period of imprisonment.

1. The Registrar, provisional liquidator, Company Liquidator, or any other person authorized by the Tribunal may file a complaint in this matter before the Special Court.