Home Companies Act CS, Director and Company penalised for Non-pagination of Board Minutes and Keeping few pages blank

CS, Director and Company penalised for Non-pagination of Board Minutes and Keeping few pages blank

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CS, Director and Company penalised for Non-pagination of Board Minutes and Keeping few pages blank

CS, Director and Firm penalised for Non-pagination of Board Minutes and Preserving few pages clean

The Ministry of Company Affairs (MCA) within the matter of EIT Service India Personal Restricted has penalised the CS, Director and Firm for Non-pagination of Board Minutes and Preserving few pages clean.

The corporate, EIT Companies India Personal Restricted (hereinafter known as Firm) having CIN: U72300KA2000PTC026968 was included on 24.04.2000 and is presently registered beneath the jurisdiction of Registrar of Corporations, Karnataka and the registered workplace of the corporate is located at Digital Park. 39/40, Electronics Metropolis Section II, Hosur Highway, Bangalore – 560100, Karnataka.

Whereas, in the course of the course of inquiry beneath part 206 of the Act, violation of part 118(1) of the Act was observed stating that the Board Minutes don’t include correct pagination and few pages are stored clean with out crossing the identical with the initials of the Chairman of the Board. For the violation, Minutes of the Board Assembly dated 19.01.2017, 23.12.2017 and 23.03.2018 had been identified within the inquiry report. Subsequently an adjudication discover dated 24.02.2023 was despatched to the corporate and its administrators. The corporate responded vide letter dated 12.03.2023 accepting the default stating that as a consequence of administration change and oversight, there was non-compliance of part 118 of the Act learn with SS-1.

As per the provisions of part 118(1) of the Act, each firm shall trigger minutes of the proceedings of each normal assembly of any class of shareholders or collectors, and each decision handed by postal poll and each assembly of its Board of Administrators or of each committee of the Board, to be ready and signed in such method as could also be prescribed and stored inside thirty days of the conclusion of each such assembly involved, or passing of decision by postal poll in books stored for that objective with their pages consecutively numbered. As per the provisions of part 118(10) of the Act, each firm shall observe secretarial requirements with respect to normal and Board conferences specified by the Institute of Firm Secretaries of India constituted beneath part 3 of the Firm Secretaries Act, and authorized as such by the Central Authorities.

As per provisions of part 118(11) of the Act, if any default is made in complying with the provisions of this part in respect of any assembly, the corporate shall be liable to a penalty of twenty-five thousand rupees and each officer of the corporate who’s in default shall be liable to a penalty of 5 thousand rupees.

Pursuant to the adjudication discover issued by this workplace, Discover of listening to was despatched on 16.11.2023 and bodily listening to was held on 06.12.2023 which was attended by Ms. Lekha Ashok, practising firm secretary who appeared on behalf of the corporate and administrators and made her submissions. She submitted additional that the corporate has made the offence good and displayed the Minutes of the Board Assembly for a similar.

It’s seen that the corporate is a subsidiary firm, it doesn’t fall beneath the definition of a small firm as per the provisions of part 2(85) of the Corporations Act, 2013. Due to this fact, the provisions of imposing lesser penalty as per the part 4468 of the Act shall not be relevant on this case.

Due to this fact, having thought of the information and circumstances of the case and the submissions made by the corporate / director / key managerial personnel by way of their authorised consultant, in view of the above stated violation of non-compliance of provisions of part 118 of the Corporations Act, 2013, in train of the powers vested beneath part 454(3) of the Act, hereby a penalty of Rs.130000 on the corporate and all of the officers in default in the course of the interval of offence dedicated.

The corporate and its administrators / key managerial personnel are hereby directed to pay the penalty quantity as tabulated above inside 90 days from the date of receipt of this Order and file Kind INC-28 attaching a duplicate of the Order and fee challans. In case of administrators, such penalty quantity is required to be paid out of their very own funds. The noticee shall pay the stated quantity of penalty on-line by utilizing the web site (Miscellaneous head) specifying the main points of this Order and the noticee who’s paying the penalty.

Enchantment, if any, in opposition to this Order could also be filed with the Regional Director (South East Area), Hyderabad inside a interval of 60 days from the date of receipt of this Order in Kind ADJ setting forth the grounds of enchantment and shall be accompanies by an authorized copy of this Order.

Your consideration can be invited to part 454(8) of the Corporations Act, 2013 in case of non-compliance of this Order whereby needed penal motion shall be initiated beneath 454(8)(1) and (ii) of the Corporations Act, 2013 in opposition to the corporate and administrators / key managerial personnel with out additional discover within the matter.

For Official Order Obtain PDF Given Beneath:

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