Company and Directors Face Penalty for Recording Incorrect Information Regarding Board Resolution

Company and Directors Face Penalty for Recording Incorrect Information Regarding Board Resolution

The Registrar of Companies (ROC), Bangalore, has passed a penalty order against a company and its directors for failing to maintain the correct records of board resolutions, violating the relevant provisions of the Companies Act, 2013.

An inquiry carried out under section 206 of the Companies Act uncovered that the company, Landomus Realty Ventures Private Limited, has recorded incorrect information. The company stated that the resolution was passed on May 3, 2018, for splitting the shares of one of its directors on his request. However, the official minutes showed that the board resolution was actually passed on May 10, 2018. This incorrect information resulted in the violation of Section 118 of the Companies Act.

As a result, the ROC imposed a penalty of Rs 25,000 on the company and Rs 5,000 each on its three directors under Section 118(11). The officers have been directed to rectify the default and pay the penalty within 90 days via the e-Adjudication facility available on the MCA Portal. The directors must pay their penalty from their personal funds.