Company Law Update
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.