Company Fined Rs 5 Lakh for Late Appointment of Company Secretary

Company Fined Rs 5 Lakh for Late Appointment of Company Secretary

The Registrar of Companies (ROC), Bangalore, has imposed a penalty on a private company and its directors for not appointing a Company Secretary on time, violating Section 203 of the Companies Act, 2013.

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During an inquiry, it was found that the paid-up capital of the company, AVK Valves India Pvt Ltd, had crossed the limit prescribed under the Companies Act for appointing a Company Secretary. However, the appointment was made much later in 2019, violating section 383A/203 of the Companies Act, 1956/2013.

The company and its officers accepted the non-compliance in their response to the ROC. Accordingly, the ROC levied a penalty of Rs 5,00,000 each on the company and its two directors. One of its directors was penalised Rs 4,41,000. The director is required to pay this penalty from their personal funds.

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The default must be rectified, and penalties must be paid within 90 days through the e-Adjudication facility available on the MCA Portal.