The Companies (Amendment) Ordinance, 2018

The Hon'ble President has given his assent to the Companies (Amendment) Ordinance, 2018 with effect form 2nd November, 2018.

 Section 2(41) - Change in Financial Year to be done by CG (to be delegated to RD).

 Section 10A - Re-introducing the Requirements of Obtaining Certificate of Commencement of Business. Non-obtaining of the same to be a ground of Striking Off.

 Section 12 -  Non-Maintenance of Registered Office to be a ground for striking off of the Company.

 Section 14 - Conversion of Public Co to Private to be with Central Govt.

 Section 53 -  Contravention on issuing of shares on discount will attract a penalty Upto the equal amount rise through  issue or  Rs.5,00,000 and amount is liable to refund along with interest @12% P.A.

 Section 64 - If SH-7 Filed after 30 days then Company & Officer Liable to a penalty of Rs. 1000/day .

 Section 77,86 & 87- Maximum time period for registration/modification of charges to be 30 days + additional 30 days. Further condonation to be done in 60 days. After total of 120 days Charge Cannot be Registered.

 Section-92  In case MGT-7 Filed After 60 days from the date of AGM, every company and officer liable to penalty Rs.50,000 and Rs. 100/day subject to maximum penalty of Rs.. 5,00,000.

 Section 102 - In case of default in explanatory statement, Every  :
Promoter ;
Director;
Manager;
Other KMP; 
Liable to penalty of Rs. 50,000 or 5 time Amount of Benefit Accruing

 Section 117 - In case MGT-14 not  filed with in  30 days  should liable to a penalty
Company  Rs. 1 lakh + 500/day ( Max 25 lacs)
Officer Rs. 50,000 +500/day ( Max 5 lacs)

 Section 121 If MGT-15 is not filed within 30 days :
Company rs. 1 lac + 500/day ( Max 5 lacs)
Officer Rs. 25,000 +500/day ( Max 1 lac)


 Section 164 &  165 - Breach in Maximum no of Directorships to be a Ground for Disqualification. 

 Section 203 - Breach of Section 203 will attract penalty of 5 lacs on Company and Rs. 50,000 On Directors and KMP.

 Section 248 - Non-obtaining of Certificate of Commencement of Business and Non maintenance of Registered Office to be a Ground for Striking off by ROC.

 Section 441 - Compounding
Compounding Threshold for going to NCLT to be revised to 25 lakhs from 5 lakh. Any offence which is punishable under Companies act, with Imprisonment only or with Imprisonment and Fine shall not be Compoundable .

NCLT said now CS touched the land mark trend of 50000 numbers , companies in India cannot argue that adequate company secretaries are not available for employment and they are taking earnest efforts to find a company secretary or using the services of a practicing company secretary.....And  slaps Rs. 4.72 lakh fine to Carmel Asia Holding for Not appointing Company Secretary

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