[Case Study] Consequences of Not Maintaining the Registered Office as per Companies Act
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 9 May, 2023
Latest from Taxmann
[2023] 150 taxmann.com 161 (Article)
Background of the case
1. This is a case relating to an appeal filed relating to an order of the Registrar of Companies / Adjudication Officer of Coimbatore, adjudication order Ref: ROC/CBE/A.O/12/01659/2021 dated 4th October 2021 for violation of provisions of section 12 of the Companies Act 2013 in respect of Kovai Medical Center and Hospital Limited, order of penalty under section 454 of Companies Act 2013 read with Companies (Adjudication of Penalties) Rules 2014.
The Kovai Medical Center and Hospital Limited seem to have been maintaining its registered office at Post Box No. 3209 obtained from the postal authorities during the period 1st April 2014 and 7th February 2018 which according to the Adjudicating officer is a violation of the provision of section 12(3) of the Companies Act 2013.
For the above violation i.e. non-maintenance of the registered office as per the provisions of the Companies Act 2013, the Registrar of Companies/ Adjudicating Officer passed an order penalizing the company and its directors / KMPs to the tune of rupees eight lakh against which the company made an appeal to the Regional Director (Southern Region).
Against the order of the Registrar of Companies of Coimbatore, an appeal was filed by Kovai Medical Center and Hospital Limited challenging the penalty of Rs. 8.00 lakhs levied, before the Regional Director (Southern Region) Ministry of Corporate Affairs, Chennai.
Upon hearing the appeal, the Regional Director slashed the penalty amount from Rs.8.00 lakh to Rs. 1.20 lakh and we shall go through this case in detail in order to understand the rationale behind the reduction in penalty granted by the Regional Director and also the intricacies involved in this case.
Provisions of the Companies Act relating to the registered office of the company
2. The following are the relevant provisions relating to the registered office of the company relating to this case.
(a) As per the provisions of section 12(1) of the Companies Act 2013, a company shall, (within thirty days of its incorporation] and at all times, thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.
Click Here to Read the Article
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
