[Opinion] Co. & Directors Penalized Rs. 8.50 Lakhs for Not Maintenance of Registered Office and Not Maintenance of Register of Members
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 7 February, 2024
Latest from Taxmann
Prof R Balakrishnan – [2024] 159 taxmann.com 110 (Article)
1. Background of this case
When the inspection was carried out in the premises of M/s Navcom Industries Limited, the inspecting officials had observed that the company was not maintaining the registered of members which is one of mandatory statutory register which is required to be maintained by all companies. Subsequently when the Adjudication officer sent a communication to the company’s registered office address, the same was returned back by the postal authorities undelivered to the company. This incident made the regulators to believe that the company had not been maintaining the registered office of the company as required under the provisions of the Companies Act 2013. The Adjudicating Officer, after following the procedure of law levied penalty upon the company and its directors to a tune of Rs. 8.50 lakhs and we shall go through these cases in details in order to understand the provisions of the Act and the consequences of the default committed by the company.
2. Relevant provisions of the Companies Act 2013 relating to maintenance of register of members
The sub-section (1) of section 88 of the Companies Act 2013 states that every company shall keep and maintain register of members indicating separately for each class of equity and preference shares held by each member residing in or outside India in such form and in such manner as may be prescribed.
3. Penal action for default/non-compliance if any
Sub-section (5) of section 88 of the companies Act 2013 read with Rule 3 of the Companies (Management and Administration) Rules 2014 states that if a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) section 88 of the Companies Act 2013, the company shall be liable to apenalty of three lakh rupees and every officer of the company who is in default shall .be liable to a penalty of fifty thousand rupees
4. Relevant provisions of the Companies Act 2013 relating to maintenance of register office of the company
Section 12(1) of the Companies Act 2013 read with Rule 25 of the Companies (Incorporation) Rules 2014, “A company shall, within thirty days of its and at all times thereafter, have a registered office capable of acknowledging all communications and notices as may be addressed to it.
5. Penal action for default/non-compliance if any
Section 12(8) of the Companies Act 2013 states that if any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees,
Click Here To Read The Full Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
