Skip to main content

Violation of Section 136 of Companies Act, 2013 l Corporate Law l ROC Order l Indian Company Law l CorpDaily

                                                              Case Study

Case: Failure to furnish the proof of sending the notice of AGM and Balance Sheet to the Members by hand delivery/ordinary post.

Governing Section: Section 136(1) of the Companies Act, 2013  

As per the provisions of Section 136(1), a copy of the financial statements, auditor’s report, and other relevant documents which are required by law to be annexed or attached to the financial statements are required to be sent to every member of the company, to every trustee for the debenture-holder of any debentures issued by the company, and to all persons other than such member or trustee, being the person so entitled, at least 21 (“Twenty One”) days before the date of the Annual General Meeting.

Penal Section: Section 136(3) of the Companies Act, 2013.

Penalty Imposed by the Adjudicating Officer: INR 17,500/- per financial year for which the default was committed.

Abstract of the matter: In the given case, it was observed from the Form MGT-7 filed with the Office of the Registrar of Companies that the Company had committed a default in complying with the provisions of the Companies Act, 2013, as it was unable to furnish the proof of dispatch of the Notice of the AGM and the Balance Sheet to the Members of the Company.

During the hearing of the case, it was submitted before the Office of the Registrar of Companies that the Company was unable to furnish the Proof of Delivery due to some administrative error and the Company had issued the Notice of the AGM and Balance Sheet to the Members within the prescribed time. Further, confirmations from the members were also taken in this regard. However, the above submissions were not taken into consideration as the Company had Suo-Moto admitted the default in Column No. 11 of the e-form MGT-7 which relates to Certification of Compliances and Disclosures.

After hearing the matter and taking into consideration the fact that the concerned Company was a small company, the RoC levied a penalty of INR 12,500/- on the Company and INR 2500/- on each of its Directors.

The above case law highlights the importance of the declarations made in forms filed by the Company. Further, it also highlights that the essence of law must be kept in mind while complying with the provisions of the law.

 Kind Attention: The above information is for educational purposes only.

 

 

Comments

Post a Comment

Popular posts from this blog

Procedure for change of name of a Company as per the provisions of Companies Act, 2013

Many a time management of the Company may decide to change the name of the Company which may be due to various reasons like change of the objects of the Company, re-branding, conversion from Private to Public Limited or otherwise.   Given below is the procedure to change the name of a Company: 1)     Call a meeting of the Board of Directors of the Company by giving a notice of not less than 7 Days or a shorter notice may also be given as per the provisions of the Companies Act, 2013; Note: The resolution for considering the change of name may be approved through circulation. 2)    Hold the Board Meeting and get the resolution for change of name approved by the Board of the Company;   3)     Apply for the new name of the Company through RUN Service of MCA along with the following attachments: a)     Copy of the Board resolution as approved by the Board for change of name; b)     NOC from the trademark holder ...
Post a Comment
Read more

Payment of Stamp Duty on Share Certificates in Gurgaon, Haryana.

  Procedure for payment of Stamp Duty in Haryana: 1. Preparation of relevant documents: As a first step, the Company should prepare the following documents for submission to the authority:  Application along with INR 10 Court Fee Stamp; Copy of Share Certificates; Certified copy of Board Resolution; Certified Copy of PAN Card of the Company; Copy of Memorandum and Articles of Association of the Company; Copy of Form PAS-3, as filed with Registrar of Companies; List of Directors of the Company; List of Share Certificate Holders of the Company; Authority Letter in favour of Company Secretary/ Chartered Accountant for submission of documents to the authority. Note: It should further be noted that Every page of above documents should be signed by a Director of the Company and should also be stamped with the Company Stamp. 2. Submission of documents to the “Revenue Department”, Haryana. All the above documents shall thereafter be submitted to the Revenue...
Post a Comment
Read more

Legal Entity Identifier l LEI l Change in authorized official/authorized signatory on LEI Portal l Letter of Authority for Legal Entity Identifier l

Ever wondered how can you change the authorized signatory/authorized official on the website of the Legal Entity Identifier India Limited.  It is a general practice to authorize the employees of the company to undertake various statutory registrations and compliances. However, companies often feel stuck when their authorized employees leave the organization.  In today's blog, we will help you with the procedure to change the authorized signatory/authorized official of the company on the LEI Portal.  1) Board's Authorization The first and foremost step for changing the authorized signatory is to get the approval of the board for revoking the authorization granted to the existing employee (who is leaving the organization) and to authorize another official in this regard. This can be done in a duly convened board meeting or by way of a circular resolution. 2) Execution of Letter of Authority Once the board has authorized another official of the company, a "Letter of Authorit...
1 comment
Read more