No. 5/2/2000-CL.V

Government of India

Ministry of Law, Justice & Company Affairs,

Department of Company Affairs

 

Shastri Bhawan, 5th Floor, "A" Wing,

Dr. R. P. Road, New Delhi-110 001

Dated: 27.01.2000

PRESS NOTE NO. 1/2000

Subject:- Action taken by Department of Company Affairs against RBF Nidhi Limited - Reconstitution of Board of Directors.

 

Upon hearing the petition filed by the Central Government under sections 397,398, 401,403 and 408 of the Companies Act,1956 alleging mismanagement in the affairs of M/s RBF Nidhi Limited the company Law Board have passed interim orders under section 403 of the Companies Act,1956. With a view to create a sense of confidence in the minds of investors and keeping in view the interest of depositors, Department of Company Affairs presented a petition to Company Law Board for immediate action of reconstituting the Board of Directors of RBF Nidhi Limited and Company Law Board has superceded the present Board of Directors with immediate effect and reconstituted the Board with the following as directors:

  1. Shri A. M Swaminathan- Retired Secretary, Government of Tamil Nadu, Chennai .

  2. Shri NR Sridharan- Retired Director, Department of Company Affairs, Chennai.

  3. Shri KJ Pappachen, President, RBF Nidhi Investors Association, Anna Nagar, Chennai.

  4. Shri R. Desikan-Consumer Activist.

  5. Shri Arvind Datar- Advocate, Madras High Court, Chennai.

  6. Shri R. Rudrakumar, Chartered Accountant, Chennai.

2. Shri AR Rao, Special Officer appointed by the Central Government will function as the Chairman of the Board. The first meeting of the Board will take place not later than 31st January, 2000 and thereafter at least once a month. The Board will prepare a status paper on the affairs of the company and also draw suitable scheme for repayment of the deposits for consideration of Company Law Board. The duly constituted Board has also been directed to do this latest by 31.03.2000.

3. The Press Note has been placed at the Web page of the Department of Company Affairs at the Internet Address http://www.nic.in/dca.

 

 

( A Ramaswamy)

Joint Secretary to the Government of India.