The order holds that delayed dematerialisation of securities violates Section 29(1A) and Rule 9A. The company and directors were penalised under the residuary provision for prolonged non-compliance.
Failure to file INC-20A within 180 days resulted in penalties on both the company and its directors. The order highlights strict enforcement of commencement of business provisions.
The authority held directors personally liable for a prolonged default in commencement compliance. The case highlights that continuing defaults can result in maximum statutory penalties.
The order holds that an additional director cannot continue beyond the statutory cut-off date without shareholder approval. Allowing delayed regularisation attracted penalties under Section 172.
Authorities imposed mandatory penalties after directors failed to explain adverse audit remarks in the Directors’ Report, breaching statutory disclosure obligations.
The adjudicating authority held that failure to maintain the statutory register of members is a clear violation of Section 88. Such non-compliance attracts monetary penalties on both the company and its directors.
Authorities held that non-holding of Board meetings since incorporation is a serious governance lapse. Directors were personally penalised for violating mandatory meeting requirements under company law.
Failure to file AOC-4 for multiple years led to penalties under Section 137(3). The order reiterates that statutory timelines are mandatory and enforceable through adjudication.
Authorities held that failure to explain adverse audit remarks in the Directors’ Report violates statutory disclosure duties and attracts mandatory penalties.
The authority held that absence of a statutory register of members at the registered office violates Section 88. Administrative or record-keeping difficulties were not accepted as a defence, resulting in penalties on the company and directors.
