05 November 2012
A company having paid up capital of Rs.5 Crore or more required to appoinment whole time company secretary. If company not appoint whole time company secretary havig paid up capital of Rs 5 Crore of more than what are the consequances arise?
05 November 2012
As per Sec 383A (1A) If a company fails to comply with the provisions of sub-section (1), the company and every officer of the company who is in default, shall be punishable with fine which may extend to five hundred rupees for every day during which the default continues:
Provided that in any proceedings against a person in respect of an offence under this sub-section, it shall be a defense to prove that all reasonable efforts to comply with the provisions of sub-section (1) were taken or that the financial position of the company was such that it was beyond its capacity to engage a whole-time secretary.
Failure to comply with section 383A Where a company having paid-up share capital of Rupees Five Crores or more fails to employ a whole-time secretary, the company and every officer of the company who is in default shall be punishable with fine upto Rs. 500 for every day during which the default continues:
Provided that in any proceedings against a person in respect of an offence under this section, it shall be a defence to prove that all reasonable efforts to comply with the provisions of section 383A(1) were taken or that the financial position of the company was such that it was beyond its capacity to engage a whole-time secretary.
The ROC will demand information under section 234 that why the company is not appointed as CS.
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