ROC Ahmedabad Imposes Penalty for Non-Appointment of Woman Director

The Ahmedabad Registrar of Companies (ROC) levied penalties on a company named M/s Shreejikrupa Project Limited and its director for non-compliance with Board composition requirements.

Background of the case

The company has filed a suo motu application under Section 149(4) of the Companies Act, 2013, through Form GNL-1, accepting non-compliance with provisions regarding the appointment of a woman director.

Furthermore, the company also filed Form GNL-3, stating that Mr Sanjay Kumar Varsani, Whole-Time Director, has been designated as the “Officer in Default” under Section 2(60) of the Act and requested that any penalty be imposed only on him.

According to the law, the company was required to appoint at least one woman director on its Board from April 01, 2020, as its turnover stood at Rs 349.17 crore for the financial year ended March 31, 2020. But the company failed to appoint a woman director from April 01, 2020, to January 29, 2024 (1,398 days).

The company regularised the non-compliance by appointing Ms Chandni Mahendra Malaviya as an Independent Woman Director with effect from January 29, 2024. As the violation relates to non-compliance with Board composition requirements, ROC imposed a penalty of Rs 300,000 on the company and Rs 100,000 on its director.