Penalty Levied for 6-Day Delay in Filing MR-2 Under Companies Act:

Penalty Levied for 6-Day Delay in Filing MR-2 Under Companies Act The Registrar of Companies (ROC), Haryana, levied a penalty on the Company and its Officers in default for the delay in filing e-Form MR-2.

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The Company has appointed a Managing Director (MD) on 29.05.2024 in terms of the provisions of Section 196(3)(a) read with Schedule V of the Companies Act, 2013. According to Rule 7(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company is required to file e-Form MR-2 with the Central Government within a period of 90 days from the date of appointment. However, the Company filed e-Form MR-2 on 03.09.2024, which was after 96 days from the date of appointment. Accordingly, the delay in filing the form was 6 days. Thus, the Company and its officers in default were liable to a penalty under Section 450 of the Companies Act, 2013, for contravention of Rule 7(3) read with Section 196(3)(a) of the Act. In their reply, the Company and its officers admitted that the default had happened inadvertently and sought an opportunity for a personal hearing. In this respect, a hearing was held on 21.05.2026 with the participation of the authorised representatives of the Company and its officers.

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No Penalty Against Company as ROC Drops Proceedings for Non-Appointment of Independent Directors

During the hearing, the Company and its officers again admitted the default. After considering the facts, the ROC imposed a penalty of Rs 16,000 on the Company and Rs 16,000 on each of its officers in default.