c

Non Adherence to Secretarial Standards lands Companies in a soup ;ROC imposes penalty

The Companies Act, 2013 has entered into a maturity phase as its inception is over seven years. Secretarial Standards were introduced to plug in the gap that the Act did not provide for as a measure of good Corporate Governance.

Yet, the Corporate and Professionals still act as a novice observer in adhering to the Act and Rules and Standards.

The ROC whilst making an inspection u/s 206(5) of the Act, found major discrepancies in the maintainence of the Minutes of a Public Limited Company thereby imposing penalties in the following manner on the eight Directors ( excluding Independent Directors) and the Company:

25k on the Company, 5k on each Director for first Offence.

50k on the Company, 10k on each Director for a subsequent Offence.

Yet in another inspection another Company has been slapped with a penalty of Rs. 3.25lakh and Rs. 65k on the Directors.

To be specific, Corporates and Professionals should be aware that u/s 118(10), it is mandatory to follow the Secretarial Standards 1 and 2.

ROC orders show that MCA is showing the importance of total Compliance.

Author Bio

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Telegram

taxguru on telegram TELEGRAM GROUP LINK

More Under Company Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

January 2022
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31