Failure to regularize the appointment of additional Director – ROC Kanpur imposed a penalty of Rs. 6 Lakh
In Matter of M/s. ORIENTAL INDIA KISANSHAKTI NIDHI LIMITED, Mr. Kuwar Bahadur was appointed as an Additional Director of the company w.e.f. 25.02.2017; however, his appointment was not regularized at the subsequent AGM.
As per Section 161(1) of the Companies Act, 2013, an Additional Director may be appointed by the Board but can hold office only up to the next Annual General Meeting (AGM). To continue, they must be regularized by shareholders at the AGM.
ROC KANPUR IMPOSED A PENALTY OF ₹6 LAKH ON THE COMPANY & ITS DIRECTORS FOR “FAILURE TO REGULARISE THE APPOINTMENT OF THE ADDITIONAL DIRECTOR AT THE NEXT AGM.” IN VIOLATION OF SECTION 161(1) OF THE COMPANIES ACT, 2013.
The ROC imposed a penalty of ₹3 lakh on the company and ₹1 lakh each on three directors.
The copy of the order is as under:
