Non-declaration of beneficial ownership by filing e-form BEN-2: MCA imposes penalty on Private Company & Directors
The adjudicating authority noted that the company failed to declare significant beneficial owner under Section 90 of the Companies Act, 2013
In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty was imposed on a private limited company and its directors due to non-compliance with beneficial ownership disclosure under the Companies Act, 2013, and due to delay in filing e-Form BEN-2. The private limited company was incorporated under the provisions of the...
In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty was imposed on a private limited company and its directors due to non-compliance with beneficial ownership disclosure under the Companies Act, 2013, and due to delay in filing e-Form BEN-2.
The private limited company was incorporated under the provisions of the Companies Act, 2013.
The inquiry report under Section 208 of the Companies Act, 2013, was submitted on April 29, 2022. After going through the review of its filings in the MCA-21 Registry, the adjudicating authority noted that e-form BEN-2 had not been submitted, suggesting non-compliance with Section 90 of the Act. A notice under Section 206(1) was issued on the same date, but the company did not respond.
Redefine Finance: Master the Art of Investment Banking - Click here to Register
The adjudicating authority also noted that the company should have issued form BEN-4 to identify significant beneficial owner and obtained a declaration in this regard.
The adjudicating authority noted that the company failed to declare significant beneficial owner under Section 90 of the Companies Act, 2013.
The penalty was imposed under Section 90(10) of the Companies Act, and a total penalty of Rs. 7 lakhs was imposed on both the company and its 3 directors.
The company and and its officers were directed under Section 454(3)(b) of the Companies Act, 2013, to identify all significant beneficial owners and file e-form BEN-2 within 90 days from the date of the order.
Redefine Finance: Master the Art of Investment Banking - Click here to Register
The order also stated that the notice must pay the penalty individually via e-payment on the MCA website under "Pay Miscellaneous Fees" within 90 days, and an appeal can be filed with the Regional Director (Northern Region), Ministry of Corporate Affairs, within 60 days using Form ADJ, along with a certified copy of this order.
This order was issued by Seema Rath, Registrar of Companies & Adjudicating Officer, Uttar Pradesh, Kanpur.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
