MCA cautions Defaulters of Non-Filing of Financial Statement or Annual Return for Continuous period of Three Financial Year

Financial Statement - MGT 7 - AOC 4 - Taxscan

The Ministry of Corporate Affairs ( MCA ) has cautioned defaulters of non-filing of financial statement or annual return for a continuous period of three years.

The MCA said that, the Registrars of Companies (ROCs) are in process of identification and flagging of directors disqualified under section 164(2)(a) of Companies Act, 2013 for their default of non-filing of financial statement or annual return for continuous period of three financial years i.e. 2015-16, 2016-17 and 2017-18.

The MCA also said that, The defaulting directors are cautioned to find the pending statutory returns and do necessary compliance as per provisions of law, otherwise action will be initiated under Section 164 of the Companies Act, 2013 and Rules made thereunder.

The DINs of such directors are not allowed to be used for filing any e-forms on MCA21 portal, the MCA also added.

According to Section 164 of the Companies Act 2013 deals with disqualification of Directors, Once a person is disqualified as a Director, he/she will not be eligible for being appointed as Director of that company or any other company for a period of 5 years from the date on which the company failed to file annual compliance.

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