Director Penalised for Furnishing Incorrect Particulars in E-Form AOC-4 Despite Inadvertant Error

Shri Vinayaka Products Private Limited is a company incorporated under the Companies Act, 2013 and had filed Form AOC-4 on 25 October 2024. Mr Madhav Babulal Todi, Director of the company, has filed Form AOC-4 and on 5 May 2026, he filed an application and sought rectification of an error that happened in filing AOC-4 for financial year 2023-24.

The issue that arose before the Registrar of Companies (ROC) Mumbai,  was that since the company had a subsidiary company, it was hence required to fill outbbut in the form, the choice of particulars for the option of existence of a subsidiary company was filled as “No” instead of a “Yes” and that form was digitally signed and certified by the Director. So, the issue before the ROC was to decide Whether the Director would be liable under Rule 8(3) of the Companies (Registration Offices and Fees) Rules, 2014 for filing incorrect particulars and hence should be penalised under Section 450 of the Companies Act, 2013.

The ROC observed that Rule 8(3) imposes a statutory obligation on the person who authorises the e-form and ensuring accuracy is a corollary responsibility and thus, the Director, Mr Madhav Babulal Todi, must be liable for the furnishing of incorrect particulars. The ROC also clarified that this order would only be confined to the inadvertent error in filing of Form AOC-4 and would not be affecting financial statements and other documents filed with the Ministry.

Accordingly, the ROC exercised the powers under Section 454 read with Section 450 of the Companies Act and imposed a penalty of Rs 10 thousand on the Director Mr Madhav Babulal Todi. The penalty is required to be paid from the personal sources of the director within 90 days of the receipt of the order.