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2018 (1) TMI 1589 - AT - SEBIFraud made by Directors - Person responsible for issuance of the redeemable preference shares - as argued on behalf of the appellant that the appellant was not a director when the resolution regarding issuance of redeemable preference shares was passed by the company thus he should not be made responsible for the acts of other directors - HELD THAT:- Senior Counsel fairly submits that the appellant is being held responsible, particularly in clause "f", because he continues to be a director as per the records of ROC as reflected on MCA portal. The concern of SEBI seems to be that the present directors, wrongly or rightly, who have been shown as directors on MCA portal should be made responsible for ensuring the repayment of the amount collected illegally by the company pursuant to resolution passed on 15th February, 2012, although the appellant was not a director at that time remains an admitted position. We are of the considered opinion that this appeal can be disposed of with a direction to the appellant to obtain appropriate documents/orders from the competent authority to the effect that he was fraudulently appointed as director of the company in question on 10th February, 2015. For this purpose, the appellant is granted time up to one year to do the needful and submit the same to SEBI. In the eventuality of appellant producing the documents to the satisfaction of SEBI that he was fraudulently inducted as one of the directors of the company, SEBI will pass appropriate orders as per law.
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