9911796707
TMI Blog2022 (11) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribes a penalty of Rs. 50,000/- and Rs. 1,000/- per day for continuing offence for every director and KMP - appointment Key Managerial Person is the collective responsibility of the entire Board. Further, a Whole-time Director is included in the definition of Officer in Default and Key Managerial Personnel as per Sec. 2(60) r/w Sec. 2(51) and thus the MD and Wholetime Directors are liable for penalty. The penalty is imposed on the Company and its Officers in default as per table below for violation of provisions of Section 203 of the Companies Act, 2013 for delay of 122 days. It is opined that, the penalty is commensurate with the aforesaid failure committed by the Notice. Application disposed off. - ROC(M)/RS/ADJ-ORDER/3220 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ths from the date of such vacancy i.e. latest by 20.09.2021. However, the Company appointed Ms. Pooja Jain as Whole-time Company Secretary on 20.01.2022 with a delay of 122 days, as it could not find a suitable candidate. This delay of appointment of Company Secretary resulted in violation of provisions of Section 203 of the Companies Act, 2013. 4. Sections 203(1), 203(4) and 203(5) are reproduced as under:- Section 203 (1) - Every company belonging to such class or classes of companies as may be prescribed shall have the following whole-time key managerial personnel,- (i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director; (ii) company secretary; and (iii) Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2013. As per Section 203(5) of the Companies Act, 2013. Further, Section 203(5) of the Companies Act, 2013 prescribes a penalty of Rs. 50,000/- and Rs. 1,000/- per day for continuing offence for every director and KMP. Section 203(4) of the Companies Act, 2013, states that If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of six months from the date of such vacancy . Thus, appointment Key Managerial Person is the collective responsibility of the entire Board. Further, a Whole-time Director is included in the definition of Officer in Default and Key Managerial Personnel as per Sec. 2(60) r/w Sec. 2(51) and thus the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11,38,000 (-) Thu period of violation of provisions under Section 203 of the Companies Act, 2013 is from 20-Sept -2021 till 20-Jan-2022 and delay is 122 days. As per signatory details available on MCA-21 portal, the above-mentioned individuals were Officers in default during the period of vioIation b) The Notice shall pay the said amount of penalty through Ministry-of Corporate Affairs portal and proof of payment be produced for verification within 30 days of receipt of this order. c) Appeal against this order may be filed in writing with the Regional Director (Western Region) within a period of sixty days from the date of receipt of this order in Form ADJ setting forth the grounds of appeal and shall be accompa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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