ROC Delhi Imposes Penalty for Missing Minute Book Date and Serial Number
The maintenance of accurate and comprehensive minutes is of paramount importance under the Companies Act, 2013. Minutes serve as a crucial record of discussions, decisions, and resolutions made during corporate meetings. They provide an official account of proceedings and act as a legal document that holds significant weight in the corporate governance framework.
In a recent development, the Registrar of Companies (ROC), Delhi, has imposed a penalty on Teleone Consumers Product Private Limited. The violation pertains to non-compliance with section 118(10) of the Companies Act, 2013, as detailed in an Inquiry Officer’s report.
As per section 118(10) of the Companies Act, 2013 every company has to mandatorily comply with secretarial standards w.r.t general meetings, Board Meetings and other meetings etc.
The company, registered under the given Act, failed to mention the date of signing and the serial number of the minute book, which is a mandatory requirement. It was noted that there is a violation of section 118(10) for the Financial Year ended on 31.03.2016, 31.03.2017, and 31.03.2018.
The company’s negligence in complying with secretarial standards concerning general and board meetings, specifically not mentioning the signing date and the serial number of the minute book, resulted in this violation.
The penalty includes an amount of Rs.75,000/- on the company and Rs.15,000/- on each of the directors. The penalized company and directors have the right to appeal against this order to the Regional Director (NR), Ministry of Corporate Affairs, within a period of sixty days from the receipt of this order.
Conclusion: This case highlights the importance of adhering to corporate governance norms and the consequences of non-compliance. The ROC Delhi’s order serves as a cautionary reminder for all companies to adhere strictly to the regulations set forth in the Companies Act, 2013, and ensures that such lapses in maintaining corporate records can lead to financial penalties. Hence, companies must invest in strict compliance practices to avoid such penalties and uphold good corporate governance