MCA imposes penalty of Rs. 50000 for Non Holding Minimum required Board Meeting

The Ministry of Corporate Affairs(MCA) has issued an order for Penalty under Section 454 for violation of Section 173 of the Companies Act 2013  and imposed penalty of Rs. 50000 for Non Holding Minimum required Board Meeting.

The Company KRIS PACKAGING SYSTEMS PRMTE LIMITED [herein after known as Company] is registered with this office under the provisions of Companies Act 1955 having its registered address at 65, SHANTI INDUSTRIAL ESTATE, SAROJINI NAIDU ROAD MULUND- WEST, MUMBAI, Maharashka, 400080, India as per the MCA portal.

Findings and Observations:

Hearing was dispensed with. The Authorised Representative made a submission that as per Section 173(4) of the Companies Act, 2013 the Officer of the Company whose duty was to give notice under the section who failed to do so should be held liable. In support of his argument, he submitted a certified true copy of resolution dated 3011 2018 Passed by the Board authorising Mr.Shailesh Gulabchand Sheth, Director to send the notices under Section 173 of the Companies Act, 2013.

Section 118 of the Companies Act, 2013 read with Secretarial Standard 1 states that any Director of a Company may, at any time, summon a meeting of the Board. The Company Secretary or where there is no Company Secretary, any person authorised by the Board, on the requisition of a Director, shall convene a meeting of the Board, in consultation with the Chairman.

As per the certified true copy of the resolution dared 30.11.2018, Mr. Shailesh Gulabchand Sheth Director has been appointed Chatman to preside over meetings of the Board.

Order:

Having considered the facts and circumstances of the case and after taking into account the factors above, and submission of the Applicant, I hereby impose a penalty of Rs.50,000/- (Rupees Fifty Thousand only) the following Officers in default, for violation of provisions of Section 173 of the Companies Act, 2013.

The period of violation of provisions under Section 203 of the Companies Act, 2013 is from 1-Jun-2019 till 21-Jun-2019 with delay of 19 days and from 19-Oct-2019 till 11-Dec-2019 with delay of 52 days.

The Noticee 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.

Please note that as per Section 454(8)(i) of the Companies Act 2013, where company does not pay the penalty imposed by the Adjudicating Officer or the Regional Director within a Period of ninety days from the date of receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees.

To Read Official Order Download PDF Given Below: