Company Law Update
Highlights of
Companies (Amendment) Ordinance 2019
- Commencement Certificate is mandatory now to be obtain within 6 months of Incorporation without which, it can not comment its business activity or borrow money.
- The ROC can strike off a company if the address of Regd Office is bogus or incomplete/improper address.
- Conversion of public Ltd to Pvt Ltd matters shifted from NCLT to Regional Directorate.
- Company cannot issue shares at discount, – heavy penalty imposed on violation.
- Alteration of Authorised Capital to be intimated within 30 days, default – penalty 1000 every day or 5 Lac whichever is less.
- Creation of charge filing with ROC- time limit reduced from 300 days to 60 days.
- Wrong statement/ information in filing Charge forms with ROC may lead to misrepresentation and jail
- Annual Return should be filed within 60 days from AGM, failure to this, penalty of 100 per day to Company + directors max 5 Lakh apart from ROC delay charges is applicable.
- Penalty of 5 lakh to Company secretary certifying wrong Annual Return.
- Explanatory statement to be given with Notice of General Meeting must contain all details as required by Law, if no detail/short detail/misleading – penalty for Company + Directors + KMP – 50K
- filing of Resolutions with ROC- delay will be very costly now. Penalty for defaulter increased substantially. 500 every day max 25 Lakh
12.Filing of Balance sheet with ROC within time limit- failure is costly for Company + Directors both. Penalty of 100 per day + 1 lakh to Company + Director each.
- Resignation of Auditor must be filed by the resigning Auditor within 30 days, failure to which the resigning Auditor is liable for penalty of 50,000 + 500 per day.
- A director can not become director in morethan 20 companies. If he continues, he becomes disqualified now.
- Appointment of CS on payroll (Pvt Co having paid-up capital 5 cr & above) is mandatory. Default is now very costly- penalty increased substantially.
- ROC may strike off a company if subscribers have not paid initial share capital after incorporation of a Company within 6 months.
If you want to take a good deal from this piece of writing then you have to apply these
techniques to your won website.
Oh my goodness! Amazing article dude! Many thanks,
However I am encountering problems with your RSS.
I don’t understand why I am unable to subscribe to it.
Is there anybody else having identical RSS issues?
Anyone who knows the answer will you kindly respond?
Thanks!!
Excellent site you’ve got here.. It’s difficult to find quality writing
like yours these days. I really appreciate individuals like you!
Take care!!
Do you mind if I quote a couple of your articles as long
as I provide credit and sources back to your weblog?
My website is in the very same area of interest as
yours and my visitors would genuinely benefit
from some of the information you present here. Please let me know if this ok with you.
Appreciate it!
Keep this going please, great job!
Everything is very open with a really clear clarification of
the challenges. It was definitely informative.
Your website is very helpful. Thanks for sharing!