18 July 2012
Dear Friends, What are consequences and penalties of failure to appoint CS. Paid up Capital is 5 Crore or Above. Please reply asap. Thanks and Regards Lokesh Gandhi
19 July 2012
Under section 383A (1A)of Companies Act, 1956, If a company fail 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 5[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 defence 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.]
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