1)
Why
all this?
Directors are involved in directing, managing and
controlling a private & public limited company and hence is expected to be
aware of their duties & liabilities.
This session will educate the directors to ask the right
questions and do business, which is legal and ethical.
You may soon expect Income Tax like raids from the Registrar
of Companies (ROC), as they are implementing artificial intelligence tools to
track non-compliances and impose penalties.
2)
Non-compliance
& its implications:
A Company has not been mentioning the Corporate
Identification Number (CIN) and the registered office address in the company's
letterheads and also in various documents and communications (first such
incidence of violation pointed out was on 02nd May 2017).
The
ROC relied on 8 documents/letters sent by the company (like Invoices &
reply letter to ROC) and determined that there was a violation of Section
12(3)(c) of the Companies Act, 2013 committed by the company from 2nd May 2017
to 22nd August 2022 i.e., for a duration of 1939 days delay.
ROC
then levied a daily penalty of Rs. 1000/- on the Company and each of its 3
directors, for 1939 days of delay. The maximum penalty for company is limited
to Rs. 2 lakhs whereas it is Rs. 1 lakh for every director.
Totalling
all this, Rs.5,00,000/- was
the penalty imposed on the company and its directors for not mentioning the
address of the registered office and CIN on letterhead.
3)
What
will you get?
A
Dossier for Diligent Directors to stay immune from penalties imposed by ROC
through adjudication orders will be given.
