RD Reduces Incorrect Penalty Imposed by ROC for Delay in CFO Appointment [Read Order]:

RD Reduces Incorrect Penalty Imposed by ROC for Delay in CFO Appointment [Read Order] The Director of the company has filed an appeal under section 454(5) of the Companies Act, 2013, against an incorrect order passed by the Registrar of companies (ROC) for default in compliance with the requirements of Section 203(1) read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. It is observed that the ROC has imposed a penalty of Rs. 987,000/- on the company and Rs. 537,000/- on each director, whereas section 203(5) limits the penalty for the violation of the section to a minimum of Rs. 500,000/-

Penalty Imposed by ROC

The RD can modify or set aside the order of the Adjudicating Officer in appeal if there is any legal, procedural, or technical infirmity in the order of the Adjudicating Officer. Hence, as the ROC has erred in fixing a penalty of Rs. 987,000 for the company and Rs. 537,000 on each director where the maximum penalty is fixed at Rs. 500,000, therefore, the order of the ROC is modified to this extent and a penalty of Rs. 500,000 is hereby levied on the company and each director.