Failure to Appoint Woman Director Since Incorporation: MCA penalizes Rs.2.85 lakhs on Company & MD
The company and its Managing Director were imposed a total penalty of Rs 2.85 lakhs for the period of default
In the adjudication order passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty of Rs 2.85 lakhs has been imposed on the company and directors for the failure to appoint a woman director for the company since its incorporation. The company Aastha Broad Casting Network Limited had a paid-up share capital of Rs....
In the adjudication order passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty of Rs 2.85 lakhs has been imposed on the company and directors for the failure to appoint a woman director for the company since its incorporation.
The company Aastha Broad Casting Network Limited had a paid-up share capital of Rs. 10 crores and a turnover of 4.96 crores on 31-3-2022. According to Section 149 of the Companies Act, the firm was required to select a woman director based on the aforementioned figures, but failed to do so. Thus, there is a violation of the statutory duty.
Although a Show Cause Notice (SCN) was issued, no reply was furnished by the company or its directors. It is observed by the adjudicating authority by going through the MCA21 database that the company has not appointed even a single woman director since its incorporation.
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Section 149 of the Companies Act, 2013, states that “ (I) Every company shall have a Board of Directors consisting of individuals as directors and shall have-
(a) A minimum number of three directors in the case of a public company, two directors
in the case of a private company, and one director in the case of a One Person Company; and
(b) A maximum of fifteen directors:
Provided that a company may appoint more than fifteen directors after passing a special resolution:
Provided further that such class or classes of companies as may be prescribed shall have at least one woman director.”
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The adjudicating authority concluded that there was a major violation of Section 149 of the Companies Act, and the company and its Managing Director were fined a total of Rs 2.85 lakhs for the period of default.
The company was directed to pay the penalty through the "Ministry of Corporate Affairs" portal and produce the proof of payment for verification within 60 days of receipt of the order.
This order was issued by B. Mishra, Registrar of Companies & Adjudicating Officer, Maharashtra, Mumbai.
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