Dispute

This query is : Resolved

deepak (Querist)
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02 February 2016 company is not file return last 4 to 5 years. and and additional director in not know all the fact that return is being filled. and all the penalty is filled by additioanl director . and the opinion that is he issahut the company .what is noe they to do ?

CS Divesh Goyal

CS Divesh Goyal (Expert)
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02 February 2016 When Company appointed Additional Director in your case?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 It sounds like there are several issues concerning the non-filing of returns by the company over the past 4 to 5 years, and the involvement of an additional director who may not be fully informed about the situation. Here are the steps that should be considered to address this situation:

1. **Assess the Current Status:**
- Gather all relevant documents and communications regarding the non-filing of returns, penalties, and the involvement of the additional director.
- Verify the exact status of the company's compliance with tax and regulatory authorities.

2. **Consult a Professional:**
- It's advisable to consult with a qualified chartered accountant or company secretary who specializes in corporate compliance and tax matters.
- The professional can review the company's records and provide accurate guidance based on the current laws and regulations.

3. **Rectification of Non-Compliance:**
- Determine the exact reasons for the non-filing of returns and the payment of penalties.
- If the company has not filed returns, assess the penalties and interest due. The professional advisor can help in calculating these amounts accurately.

4. **Bringing the Additional Director Up to Speed:**
- The additional director who has been involved in paying penalties needs to be fully informed about the company's compliance status and the steps being taken to rectify the situation.
- Provide the additional director with all necessary information and documentation related to the non-filing of returns, penalties paid, and any other relevant matters.

5. **Decision Making:**
- Once all parties involved have a clear understanding of the situation, including the additional director, the company's board of directors should collectively decide on the next steps.
- This may involve deciding whether to continue operations, dissolve the company, or take other corrective actions to comply with legal requirements.

6. **Taking Corrective Actions:**
- If the decision is made to continue operating the company, ensure that all pending returns are filed immediately.
- Clear all outstanding penalties and interest payments as per the advice of the professional consultant.

7. **Future Compliance:**
- Implement robust compliance procedures to ensure that all statutory filings, including annual returns, tax returns, and other regulatory requirements, are met on time going forward.
- Regularly review the company's compliance status and take proactive measures to avoid similar issues in the future.

In summary, addressing the non-filing of returns and associated penalties requires a systematic approach involving legal and financial advisors. Communication with all stakeholders, including the additional director, is crucial to ensure everyone is aware of the situation and agrees on the necessary steps to rectify it.

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