MCA slaps Penalty on Company and Directors for Non-Consecutive Page Numbering in Minutes Book [Read Order]
RoC, MCA has imposed a penalty of Rs. 17,500 on Company and Directors for Non-Consecutive Page Numbering in Minutes Book, in violation of Section 118(1) of Companies Act.
mca – Company and Directors – Page Numbering – Minutes Book – Penalty – mca portal – mca21 – TAXSCAN
mca – Company and Directors – Page Numbering – Minutes Book – Penalty – mca portal – mca21 – TAXSCAN
The Registrar of Companies (RoC) for Punjab and Chandigarh has slapped a penalty on M/s Bestow Finishing School Private Limited and its directors for infringing Section 118(1) of the Companies Act, 2013.
The violation in question revolves around the non-consecutive numbering of pages in the minutes book, a requirement mandated by the Companies Act.
The order, issued under Section 454 by the Adjudicating Officer, Karma Sharma, on December 14, 2023, stemmed from an inquiry initiated by the Ministry of Corporate Affairs. M/s Bestow Finishing School Private Limited, based in Chandigarh, found itself under scrutiny for failing to comply with the Companies Act.
Section 118(1) of the Companies Act, 2013, mandates the preparation and signing of minutes for general meetings, board meetings, and resolutions passed by postal ballot. The minutes must be consecutively numbered and recorded within thirty days of the meeting or resolution. The investigation revealed a lapse on the part of M/s Bestow Finishing School Private Limited in consecutively numbering the pages of its minutes book, resulting in a violation of Section 118(1).
Despite receiving a Show Cause Notice on October 19, 2023, the company and its directors remained silent. An opportunity for oral submission was extended to Mr. Sukhdev Gandhi, one of the directors.
Mr. Gandhi claimed the company was non-operational with no business activities, attributing non-receipt of the Show Cause Notice to hospitalization, though no proof was provided. During the oral submission, Mr. Gandhi verbally agreed to pay the imposed penalty.
The Adjudicating Officer determined the company and its officers were liable for the penalty outlined in Section 118(11) of the Companies Act, 2013. The penalties are as follows:
Company, M/s Bestow Finishing School Private Limited: Rs. 12,500 (50% reduction for being a small company.
Directors: Rs. 2,500 each.
The penalty is to be paid through the Ministry of Corporate Affairs portal, in accordance with Rule 3(14) of the Company (Adjudication of Penalties) (Amendment) Rules, 2019. The Adjudicating Officer emphasized that the penalty should be settled from the personal sources or income of the officers in default.
The penalty serves as a reminder of the stringent adherence required by companies to the regulations stipulated in the Companies Act, emphasizing the importance of maintaining accurate records and promptly responding to official notices.
To Read the full text of the Order CLICK HERE
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