Show Cause Notice under MCA-CMS:
All of us are aware about the MCA-Compliance Monitoring system (AI based system) which is tracking certain non-compliance of the company automatically and sending show cause notice for violation of Section 96 (Annual general Meeting) & other related sections based on te filings of the companies.
So lets understand what is SCN indicates here:
SCN is automatically generated Notice through system sent on Director’s, KMP & Company’s Registered E-mail address with MCA. It contains all the details regarding the non-compliance of the section, provision or explanation of the section & such other things.
SCN provides opportunity of being heard within 15 days through MCA-CMS portal.If company is unable to answer within 15 days the Registrar of Company will initiate the proceedings against the company for non-compliance.
The delivery of SCN, although e-mail is handled, is considered to be of service to every official who fails to comply with provisions of The Companies Act 2013
How to deal with SCN??
Since many companies received notice for non-compliance in First week of November,they are not very much clear about replying SCN received from MCA-CMS or making oral representation So lets discuss about the process to reply SCN under MCA CMS:
First of all, you need to check non-compliance for which SCN is issued. Like for an instance,If mistakely you have mentioned wrong dates in AOC-4 or MGT-7 which give issuance of SCN, though you have conducted AGM. Even though you didnt violated Section 96,you should accept errors in the submission of e-forms and prayer may not contain any penalty as the Annual General Meeting was held within the deadline. You might get the order to edit both the e-forms to correct AGM date.
Process of replying SCN-
# Prepare a letter in PDF to reply SCN
# Prepare documents related to it like evidences & supporting documents in pdf itself
# Click- https://mcacms.gov.in/
# Click on the related non-compliance part like Annual General Meeting or so
# Mention Reference no refered in SCN
# Click on otp button & enter otp (send to e-mail id of the company)
# Login,then you will find your company’s non-compliance in which you can give reply or attach pdf and submit reply to MCA-CMS.
If company desires to make oral representation:
Also, if company wants to make oral representation through its Authorized representative,it can do so by indicating the same while replying through electronic mode.
If the adjudicating officer is of opinion that physical representation is required, he shall issue notice,within 10 working days from the date of receipt of reply,and shall fix the date for appearance through its authorized representative.
P.S.- Please note that CMS portal is not accepting e-forms. If you want to attach e-form as a proof while replying to SCN from MCA-CMS, you need to first printout the form, scan and attach.
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