Resident directors - penalty in case of non-compliance

Arjun G. (DEF) (57 Points)

16 September 2016  

Dear Experts,

To the best of my knowledge, there are no specific penalty for defaulting the obligation to appoint a resident director in a private limited company under s. 149(3) of the Companies Act, 2013. 

My view on this is therefore that s. 172, which provides for a fine between 50,000 and 5 lakhs rupees to the company and every officer in default.

Would you agree with this? 

Thank you very much in advance