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Journalism of Courage
The Government has ordered prosecution against Jet Airways for alleged violation of various sections of the Companies Act, 1956, on account of financial transactions, including dividend paid out of profits.
Finance Minister Jaswant Singh said on Friday that the company was inspected under Section 209-A of the Act (under which a company is bound to keep account in respect of all sums of money received and expended and the matters in respect of which the receipt and expenditure take place).
The government ordered prosecution for alleged violation of Sections 205 (which prescribes that dividend be paid only out of profits), 224(8) (remuneration of auditors of a company), 292(1C) (power to borrow money otherwise than on debentures) and 211 (8 cases) (form and contents of balance sheet and profit and loss account) of the Act, he said. Singh said Jet Airways (India) Private Limited was incorporated as a private limited company on April 1, 1992 and the company became a deemed public company under Section 43A(1A) of the Companies Act on July 1, 1996.
