A company has to meet with numerous compliances apart from Annual Returns, but companies might not know the other mandatory and routine compliances applicable on them which could attract a good amount of penalties.

Here is the list of few penalties for contravening the routine compliances/Provisions under Companies Act, 2013 which many of the Companies ignores and get a bunch of penalties.

S. No. Particulars Penalty Remarks
1. Board Report/ Annual Report (Section 134 of Companies Act, 2013) Company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees

and

Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

Board report is attached with AOC-4, any mistake in the board report can lead to a big penalty.
2. Minutes Book, Secretarial Standards (Section 118 of Companies Act, 2013) Company shall be liable to a penalty of twenty-five thousand rupees

and

Every officer of the company who is in default shall be liable to a penalty of five thousand rupees.

Section 118 covers everything that is mentioned in SS, and any default in SS or section 118 could lead to penalties.
3. MGT-14, Commonly filed E-from as per section 117 of Companies Act, 2013 Company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of twenty-five lakh rupees

and

Every officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees

Don’t forget to file this commonly filed e-form it could also lead to a good amount of penalty.
4. Register of Contracts or Arrangements in Which Directors are Interested (Section-189) Every director who fails to comply with the provisions of this section and the rules made thereunder shall be liable to a penalty of twenty-five thousand rupees. Many Companies forget to comply with this section and bears the unwanted penalties. Make sure to comply with.
5. Register of Members, etc. (Section 88 of Companies Act, 2013) the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day, after the first during which the failure continues. This is to be maintained by all the companies and non- maintenance of the same could lead to penalties.
6. Register of charges (section 85 of Companies Act, 2013) The company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees

and

Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

Whenever company takes loan and make complete payment it do files CHG forms but forgets to maintain the register of charge which could lead to penalty .
7. Register of Directors and key Managerial Personnel and their Shareholding (Section 170 of Companies Act, 2013) The company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees. This is again one of the mandatory register and non-maintenance of the same could lead to penalty.

Apart from this there are ‘n’ number of compliances which is to be made by companies and could attract big penalties, this is just the reflection of few of them, make sure to comply all on time and avoid unnecessary penalties.

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Qualification: CS
Company: K U & COMPANY
Location: Rajasthan, IN
Member Since: 11 Jun 2020 | Total Posts: 2

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