Discrepancies in reporting in number of Board Meeting in MGT-7A vis a vis Board meetings – ROC imposed monetary penalty on a Company
Mismatch in Board Meeting Numbers in FY 2021-22 Filing: Legal Consequences for M/s BE Bold & Confident Careers Private Limited
An order dated January 13, 2025, under Section 454 of the Companies Act, 2013, highlights a violation of Section 134 by M/s BE Bold & Confident Careers Private Limited.
According to the MGT-7A filed with the MCA for FY 2021-22, the company reported six Board meetings. However, the Board’s Report for the same period stated only five meetings, leading to discrepancies in the filing.
As a result, the adjudicating officer concluded that the company violated Section 134 of the Companies Act, 2013, by submitting inaccurate information in the Director’s Report.
Under Section 134(8) of the Companies Act, 2013, the company faces a penalty of INR 3 lakh, with a penalty of INR 50,000 imposed on each officer in default. However, as the company qualifies as a small company, the final penalty imposed is 50% of the total penalty.
This case underscores the critical importance of the maker-checker concept during the annual filing process, especially for small private limited companies, where filings are often handled by external professionals.
The Copy Of the order is as under:
