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Default if meeting is not conducted u/s 173(1) of companies act

11 August 2020

what is the penalty/ default if a company doesn't hold the meeting within 30days of its incorporation under section 173(1) of companies act ?

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CA KARAN SINGH (Auditor at Big 4) (622 Points)
Replied 12 August 2020

As per Section 173(4) of Companies Act, 2013, Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees.

And as per Sec 118(10) of Companies Act, 2013, Every company shall observe secretarial standards with respect to general and Board meetings specified by the Institute of Company Secretaries of India constituted under section 3 of the Company Secretaries Act, 1980 (56 of 1980), and approved as such by the Central Government.

The Company shall be liable to a penalty of Twenty Five Thousand Rupees and every officer who is in default shall be liable to the penalty of Rs. Five thousand rupees for not observing and following "SECRETARIAL STANDARD 1 MEETING OF THE BOARD OF DIRECTORS"