RD Upholds ROC Penalty Order Issued Under Section 29 of Companies Act:

RD Upholds ROC Penalty Order Issued Under Section 29 of Companies Act The Regional Director, Kolkata, has recently upheld the penalty order issued by the Registrar of Companies (ROC) for the violation of provisions of Section 29 of the Companies Act, 2013. The company, Shivom Minerals Limited, received a show cause notice dated 21.05.2024 from the ROC, Cuttack, due to the violation of section 29 of the Act, which mandates companies to issue their securities in dematerialised form instead of physical certificates. However, on not being satisfied with the reply filed by the company, the ROC issued a penalty order dated 05.07.2024. The company filed an appeal before the Regional Director to challenge this order.

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However, the authorised representative of the company could not find any reasonable grounds through which the order could be modified. Therefore, the RD upheld the order of the ROC, Cuttack, dated 05.07.2024. The company were directed to pay the penalty within 90 days from their own funds.