MCA imposes penalty of 1138000 for non-appointment of Company Secretary
Reetu | Oct 19, 2022 |
MCA imposes penalty of 1138000 for non-appointment of Company Secretary
The Ministry of Corporate Affairs(MCA) has issued an order for Penalty under Section 454 for violation of Section 203 of the Companies Act, 2013 and imposed penalty of 1138000 for non-appointment of Company Secretary.
The Company ELANCO INDIA PRIVATE LIMITED (herein after known is Company) is a registered company with this office under the provisions of Companies Act, 1956 having its registered address at Western Edge I, Unit 20l, 2nd Floor, Near Western Express Highway, Borivali (East), Mumbai, Mumbai City, Maharashtra – 400066, India as per the MCA portal.
The Company failed to appoint a Whole time Company Secretary from 20.09.2021 till 20 01.2021 with a delay of 122 days there by contravening the provisions of Section 203 of the Companies Act, 2013. As per Section 203(5) of the Companies Act,2013.
Further, Section 203(5) of the Companies Act, 2013 proscribes a penalty of Rs.50,000/- and Rs.1,000/- per day for continuing offence for every director and KMI, Section 203(4) of the Companies Act, 2013, states that ” If the office of any whole time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of 6 months from the date of such vacancy.” Thus appointment Key Managerial Person is the collective responsibility of the entire Board. Further, a Whole time Director is included in the definition of “Officer in Default” and Key Managerial Personnel as per Sec. 2(60) r/w, Sec. 2(51) and thus the MD and Whole time Directors arc liable for penalty.
Having considered the facts and circumstances of the case and after taking into account the factors above, I hereby impose penalty on the Company and its Officers in default as per table below for violation of provisions of Section 203 of the Companies Act 2013 for delay of 122 days.
The period of violation of provisions under Section 203 of the Companies Act, 2013 is from 20- Sept 2021 till 20 Jan-2022 and delay is 122 days. As per signatory details available on MCA-21 portal, the above mentioned individuals were Officers in default during the period of violation.
The Notice shall pay the said amount of penalty through “Ministry-of Corporate Affairs” portal and proof of payment be produced for verification within 30 days of receipt of this order.
Appeal against this order may bc filed in writing with the Regional Director (Western Region) within a period of sixty days from the date of receipt of this order in Form ADJ setting forth the grounds of appeal and shall bc accompanied by a certified copy of this order.
To Read Official Order Download PFG Given Below:
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