MCA Imposes Penalty on Company and its Directors for Non-Appointment of Company Secretary under Section 203 of Companies Act [Read Order]
Company and Directors Penalized for Non-Appointment of Company Secretary
The Ministry of Corporate Affairs (MCA) has imposed penalties on a company and its directors for failing to appoint a Company Secretary, as required under Section 203 of the Companies Act, 2013.
Adjudication by RoC Andhra Pradesh
The Registrar of Companies (RoC), Andhra Pradesh, took adjudicatory action against Garudadri Infra Private Limited, finding the company in violation of the aforementioned section. The penalty follows an inquiry revealing the company’s failure to appoint a Company Secretary despite meeting the statutory threshold for such an appointment.
The Violation: A Closer Look
The investigation highlighted that Garudadri Infra Private Limited was obligated to appoint a Company Secretary based on its financial standing and other relevant criteria as stipulated under the Companies Act. However, the company failed to comply with this crucial regulatory requirement, leading to the imposition of penalties.
- The penalties are levied as per the provisions laid down in the Companies Act for non-compliance.
- Directors responsible for the company’s management have also been held accountable for the violation.
This action underscores the MCA’s commitment to enforcing corporate governance norms and ensuring compliance with statutory requirements by companies operating in India. The penalties serve as a reminder to businesses of the importance of adhering to the Companies Act and maintaining robust compliance practices.
- MCA penalizes Garudadri Infra Private Limited and its directors for non-appointment of a Company Secretary.
- RoC Andhra Pradesh initiated the action following a finding of non-compliance with Section 203 of the Companies Act.
- The penalty highlights the importance of adhering to corporate governance norms and regulatory requirements.
- Companies must ensure they appoint a Company Secretary once they meet the statutory requirements outlined in the Companies Act.
- Failure to comply with Section 203 of the Companies Act can result in significant penalties for both the company and its directors.
- The MCA is actively enforcing corporate governance regulations to ensure transparency and accountability.
- This case serves as a warning to companies to prioritize compliance and maintain robust corporate governance practices.
- Companies should regularly review their compliance status to avoid potential penalties.