NCLAT determined that failure to file Board Reports for FY ...

Failure to File Board Reports with ROC Despite Shareholder Circulation Results in Modified Penalty Under Section 220

February 1, 2025

Case Laws Companies Law AT

NCLAT determined that failure to file Board Reports for FY 2010-11 and 2013-14 constituted continuing offences under s.220 of Companies Act, 1956. While appellants admitted default in filing with ROC, evidence showed reports were circulated to shareholders timely with no prejudice to stakeholders. Considering the inadvertent nature of omission, self-disclosure by appellant, and comparable precedents, NCLAT modified the penalty structure. The tribunal reduced compounding fees to Rs.50 per day of continuing default for both company and directors, finding original penalty excessive. The appeal succeeded with modified penalties applied under s.220 read with s.162 of Companies Act, 1956.

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NCLAT determined that failure to file Board Reports for FY ...

Failure to File Board Reports with ROC Despite Shareholder Circulation Results in Modified Penalty Under Section 220

February 1, 2025

Case Laws Companies Law AT

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