MCA Fines Company and Officers for Non-Maintenance of Board and General Meeting Minutes
According to the ROC, if the penalties are not paid through the MCA21 portal within the allotted time, further criminal action, such as prosecution or recovery, may be taken.
The Ministry of Corporate Affairs ( MCA ) has imposed monetary penalties on a company and its officers for failing to maintain statutory records of minutes of Board Meetings and General Meetings, as required under the Section 118 of the Companies Act, 2013. The Registrar of Companies (ROC), Telangana, initiated action after it was discovered during inspection that the company, M/s...
The Ministry of Corporate Affairs ( MCA ) has imposed monetary penalties on a company and its officers for failing to maintain statutory records of minutes of Board Meetings and General Meetings, as required under the Section 118 of the Companies Act, 2013.
The Registrar of Companies (ROC), Telangana, initiated action after it was discovered during inspection that the company, M/s Nandaka Information Service Private Ltd had not maintained the minutes books for Board Meetings and General Meetings.
Section 118 of the Companies Act, 2013, read with Secretarial Standard-1 (SS-1) and Secretarial Standard-2 (SS-2), mandates every company to prepare, sign and preserve minutes of proceedings of every Board Meeting and General Meeting.
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The company was given the chance to clarify and supply the appropriate documentation, but they were unable to offer adequate proof of compliance. The company and its officers were found to be in violation of Sections 118(1) and 118(10) of the Companies Act by the adjudicating authority.
Accordingly, a penalty of ₹25,000 was imposed on the company, and penalties of ₹5,000 each were levied on both the Managing Director and another officer in default, for failure to comply with the statutory requirements.
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According to the ROC, if the penalties are not paid through the MCA21 portal within the allotted time, further criminal action, such as prosecution or recovery, may be taken.
The decision clarifies the importance it is to maintain timely and accurate records of every meeting in accordance with the Companies Act and ICSI's Secretarial Standards. In addition to the penalties, non-maintenance can have a consequence on the company's compliance status and may give rise to an additional regulatory inquiry.
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