Ankita Singh’s Post

RITESH JEWELS PRIVATE LIMITED, a company registered under the Companies Act, 1956/2013 in Gujarat, was penalised by the Ministry of Corporate Affairs (MCA) for failing to include Corporate Identification Number (CIN) and the registered office address on its letterhead, as required by Section 12(3)(c) of the Companies Act, 2013. LETTERHEAD ADDRESS DID NOT MATCH WITH MCA’S RECORD The MCA's observation arose from an ordinary resolution passed during an Annual Compliance Meeting on September 22, 2021, which indicated the absence of the Corporate Identification Number (CIN) on the letterhead, leading to a violation of the Act's provisions. Upon investigation, it was discovered that the company's letterhead address did not match the one on record with the MCA. The discrepancy prompted further examination by the Registrar of Companies (ROC) Ahmedabad, which confirmed the company's non-compliance with the statutory requirements. PENALTY IMPOSED ON COMPANY & THE DIRECTORS SEPARATELY Consequently, penalties were imposed under Section 12(8) of the Companies Act, 2013, amounting to Rs. 1,00,000 on the company and Rs. 1,00,000 each on two directors/key managerial persons. In determining the penalty, factors such as disproportionate gain, loss to investors, and the repetitive nature of the default were considered. However, it was noted that quantifying these factors proved challenging due to insufficient data. Nevertheless, the penalties were deemed appropriate given the severity of the default and its duration from September 22, 2021, to July 20, 2023, totalling 667 days. PENALTIES TO BE PAID FROM PERSONAL INCOME, ON MCA’S WEBSITE The adjudicating officer emphasized that the penalty should be paid from personal sources/income of the officers in default. The notices were instructed to make the payment within 90 days through e-payment on the MCA website. Additionally, they were informed of their right to appeal the decision within sixty days, following the procedures outlined in the Companies Act, 2013. Non-payment of the penalty could result in further consequences, including fines and imprisonment for the company and its officers in default, as stipulated by Section 454 of the Companies Act, 2013. #mca #ministryofcorporateaffairs #penalties #epayment #regulatorycompliance #companiesact #india #business #trade #commerce #law #legal #lawyer #compliance

The Ministry of Corporate Affairs of the Government of India issued notifications on the latest amendments in exercise of power conferred upon it under the applicable provisions & rules of the Companies Act, 2013 in the month of July, 2024. Preeti V. Arora BHUSHAN BAJAJ #MCAUpdate #Amendment #CompaniesAct #RegulatoryUpdate #Compliance #BusinessUpdate #DirectorsKYC #StartupIndia #MCA #CompanyLaw

Compliance should be considered as Investment for Good Governance and being Ethical Corporate Citizen. Investors from global and retail prefer a fully compliant Company with full Trust for Investing and to be associated for Long Term. #compliance 🙏🇮🇳🙏

📝 Compliance Checklist for Appointing Directors in Indian Companies 📝 Appointing directors to a company in India involves several legal steps that ensure transparency, accountability, and adherence to the law. https://bit.ly/4epOCXP Here’s a quick compliance checklist to help your business stay on track when bringing new leadership on board: 1️⃣ Obtain Director Identification Number (DIN) Every prospective director must apply for a DIN through the MCA portal before their appointment. 2️⃣ Consent in Writing Ensure the director provides a written consent to act as a director using Form DIR-2, submitted to the company before the appointment. 3️⃣ Board Meeting & Resolution Conduct a board meeting to pass a resolution approving the appointment of the director, noting down all essential details. 4️⃣ Filing Form DIR-12 File Form DIR-12 with the Registrar of Companies (RoC) within 30 days of appointment, providing details about the new director. 5️⃣ Check for Disqualifications Verify that the director does not suffer from any disqualifications as per the Companies Act, such as insolvency or unsound mind. 6️⃣ Updating Statutory Registers Update your company’s statutory register, including the Register of Directors and other relevant documents. 7️⃣ Intimation to Stakeholders Notify stakeholders, such as shareholders and regulatory bodies, about the new appointment. Following this checklist ensures a seamless and compliant process for appointing directors, helping you avoid any regulatory hiccups! #DirectorAppointment #ComplianceChecklist #IndianCompanies #CorporateGovernance #Vakilsearch

The Ministry of Corporate Affairs (MCA) plays a pivotal role in ensuring corporate governance and transparency in India. In recent times, it has been stepping up efforts to ensure accountability with key focus being compliance with provisions related to Significant Beneficial Ownership under the Companies Act, 2013. In 2024, MCA has intensified its scrutiny of companies' compliance with the provisions of the Companies Act, 2013 relating to beneficial ownership and SBO. The recent enforcement actions against LinkedIn India highlight this broader trend of scrutiny by the MCA. In this article, Xerxes Antia and Sheel G. discuss the MCA's intensified scrutiny on Significant Beneficial Ownership compliance. Read the article here: https://lnkd.in/dMq63e_q

With reference to my session at Navi Mumbai Chapter of ICSI on recent important judgments in Corporate Laws ( i.e. Company Law + SEBI Laws ), sharing the details of judgments that were covered in the session. Please note that this is not the detailed PPT. In the session, I covered the facts of the case, corresponding relevant cases and recent adjudication orders by Registrar of Cos. Selection of these judgments took a lot time, because the purpose of my presentation was to improve the compliance mechanism in corporates and remove the ambiguities that were created... Feedback appreciated.

🚨 Penalty for violation of Section 158! 🚨 🔍 The ROC Goa, Daman & Diu has imposed penalty on Win world (India) Limited (Unlisted Company) and it’s Director for violation of Section 158 of the Companies Act, 2013. 📜 Here are the facts: 💢 Failure to mention DIN (Director Identification Number) in a reply during Inquiry Proceedings (Observed by the Inquiry Officer). 💢 Adjudication notice issued under Section 454(4) for violation of Section 158 of the Companies Act, 2013. 💢 ROC imposed penalty pursuant to Section 172 on Company and its officer in default amounting to INR 50,000 each. ❗️ Remember, Section 158 of the Companies Act, 2013 clearly states that: Every person or company MUST mention DIN in any Return, Information, or Particulars filed with the Authorities relating to or containing the particulars of a Director. ⚖️ Non-compliance could lead to penalties under Section 172 of the Companies Act, 2013. 📝 Attached is the official order passed by the ROC. 🔍 Stay informed! #LegalCompliance #CompaniesAct #Adjudication #Penalty

Is #Compliance a cost ? We have been debating long that legal and compliance activities is a significant cost . In turn as legal and compliance professionals we often sight a quote - If Compliance is Costly try Non-Compliance. Now we have some factual data . Some of the highlights of latest report of ET Intelligence Group on legal expenses in India are as under : a)    The total legal spending of all the listed companies on Indian bourses is minuscule at just 0.40% of their total revenue and 0.53% of their total expenditure; b)    The legal cost of the top 50 companies increased by 17.40% to INR 21,389 Cr. ;and c)    The Surge in legal expenses is attributable to increased business deals i.e. M&As, dispute resolution cost and compliance expense. The percentage of legal expenses vs the revenue seems insignificant in comparison to role played legal and compliance professionals in sustainable growth of the company . We all are witnessing a surge in corporates getting listed on NSE, BSE and SME exchange and able to raise significant funds for the growth of their business. This is one of the classic example of benefits derived by a compliant organisation. LEXCOMPLY-Global Compliance Management System Deepjee Singhal Thomas Abraham Vikesh Wallia Himanshu Gupta Pooja Aggarwal Divesh K. Anshuman Chandra Sandeep Padam Ankita Jain Nandini Raj Gupta Anuj Malik Neha Garg Rameesh Kailasam

Legal Compliance: The Silent Driver of Business Success in India. Is your business prepared for long-term success? In the competitive Indian market, legal compliance is an extremely crucial factor crucial. While often seen it as a back-office task, it ensures smooth operations and mitigates risk. Why Legal Compliance Matters: 1. Protecting Against Risks: Non-compliance with laws like the Factories Act and Payment of Wages Act can lead to penalties, fines, or business closure. Compliance keeps your business safe from these risks. 2. Demonstrating Ethical Responsibility: Compliance reflects your commitment to ethical practices, earning respect from employees, clients, and the community. It’s about building long-term trust. 3. Ensuring Stability: India’s evolving legal landscape means staying compliant with laws such as the Environmental Protection Act and Labour Laws is essential for avoiding reputational damage and ensuring growth. 4. Navigating Changes: Keeping up with regulatory updates helps you stay competitive and avoid legal hurdles. 5. Prioritizing Employee Welfare: Adhering to labour laws fosters a positive work environment, attracting and retaining talent. Legal compliance is more than a regulatory requirement; it’s key to business viability and growth. How does your business stay compliant with Indian laws? #LegalCompliance #IndianBusiness #CorporateLaw #BusinessSuccess #BusinessEthics #ComplianceCulture #IndianLaw #BusinessGrowth #RegulatoryCompliance #LabourLaws #EthicalBusiness #BusinessStability #LegalAdvice #ComplianceManagement #IndianEconomy

**Compliance Update** Supreme Court Agrees with Allahabad High Court: No Retrospective Disqualification of Directors Under Section 164(2) of the Companies Act, 2013 Before FY 2014-15. The Supreme Court has expressed its prima facie agreement with the Allahabad High Court's interpretation of Section 164(2) of the Companies Act, 2013 which disqualifies directors for not filing financial statements or annual returns for three consecutive years, does not apply to periods before FY 2014-15. The High Court concluded that provisions with punitive effects, such as Section 164(2), should not be applied retrospectively to financial years where the disqualification criteria were not in force. This may indicate that directors are safe from disqualification based on non-compliance before this time. Moving forward, it becomes crucial for companies to ensure strict and consistent adherence to the Companies Act and Secretarial Standards compliance requirements, particularly the timely filing of financial statements from the fiscal year 2014-15 onwards. Failure to undermine the compliances could result in significant legal and regulatory consequences. Case Details: Union Of India Vs. Jai Shankar Agrahari, SLP(C) Nos. 16213-16373/2021 #CorporateLaw #SupremeCourt #CompaniesAct #Directors #Compliance #LegalUpdate