New Compliances for Companies That Can Attract Huge Fine If not done

Fol­low­ing new com­pli­ance’s to be done under Com­pa­nies Act 2013 by com­pa­nies to ignore penal­ty, if not done already.

Dis­play­ing Com­pa­nies CIN on let­ter heads, invoic­es etc.

Sec­tion 12(3)© of CA 2013, which will be effec­tive from 1.4.2014, pro­vides that every com­pa­ny shall get its name, address of its reg­is­tered office and the Cor­po­rate Iden­ti­ty Num­ber along with tele­phone num­ber, fax num­ber, if any, e‑mail and web­site address­es, if any, print­ed in all its busi­ness let­ters, bill­heads, let­ter papers and in all its notices and oth­er offi­cial publications.

Paint or affix its name, and the address of its reg­is­tered office, and keep the same paint­ed or affixed, on the out­side of every office or place in which its busi­ness is car­ried on, in a con­spic­u­ous posi­tion, in leg­i­ble let­ters, and if the char­ac­ters employed there­for are not those of the lan­guage or of one of the lan­guages in gen­er­al use in that local­i­ty, also in the char­ac­ters of that lan­guage or of one of those languages

In Case of Default: If any default is made in com­ply­ing with the require­ments of this sec­tion, the com­pa­ny and every offi­cer who is in default shall be liable to a penal­ty of one thou­sand rupees for every day dur­ing which the default con­tin­ues but not exceed­ing one lakh rupees

Display Old name along with your new company name in case of change of company name within two years

Where a com­pa­ny has changed its name or names dur­ing the last two years, it shall paint or affix or print, as the case may be, along with its name, the for­mer name or names so changed dur­ing the last two years as required above

In Case of Default: If any default is made in com­ply­ing with the require­ments of this sec­tion, the com­pa­ny and every offi­cer who is in default shall be liable to a penal­ty of one thou­sand rupees for every day dur­ing which the default con­tin­ues but not exceed­ing one lakh rupees

Mention DIN No with every Signature made in the capacity of Director

As per Com­pa­nies Act 2013 Every per­son or com­pa­ny, while fur­nish­ing any return, infor­ma­tion or par­tic­u­lars as are required to be fur­nished under this Act, shall men­tion the Direc­tor Iden­ti­fi­ca­tion Num­ber in such return, infor­ma­tion or par­tic­u­lars in case such return, infor­ma­tion or par­tic­u­lars relate to the direc­tor or con­tain any ref­er­ence of any director.

One should ensure that DIN is writ­ten, wher­ev­er he is sign­ing as Direc­tor of the Company

In Case of Default: Com­pa­ny and every offi­cer of the com­pa­ny who is in default or such oth­er per­son shall be pun­ish­able with fine which may extend to Rs. 10,000/- and where the con­tra­ven­tion is con­tin­u­ing one, with a fur­ther fine which may extend to Rs. 1,000/- for every day after the first dur­ing which the con­tra­ven­tion continues

Unsecured Loan

As per Com­pa­nies (Accep­tance of Deposit) Rules, 2014 applic­a­ble from 1st April 2014, all Com­pa­nies now have to refund unse­cured loan/deposit imme­di­ate­ly. As per the pro­vi­sions, the Com­pa­nies can accept unse­cured loan or deposit from Direc­tor of the com­pa­ny pro­vid­ed fur­ther that such amount is not a bor­rowed amount and not from any oth­er person.

In Case of Default:  The Com­pa­nies which fails to refund such unse­cured loans already accept­ed from Direc­tors’ rel­a­tives or mem­bers imme­di­ate­ly shall be treat­ed as deposit and as a con­se­quence, default­ing Com­pa­nies and its offi­cer in default may face penalty/prosecution pro­ceed­ings under the pro­vi­sions of Sec­tion 73 to 76 of the Com­pa­nies Act, 2013.

Borrowing Money

Now, the pri­vate Lim­it­ed Com­pa­nies which have bor­rowed mon­ey in excess of its paid up cap­i­tal and free reserves are required to pass spe­cial res­o­lu­tion and mem­bers have to decide up to which lim­it the Com­pa­ny can bor­row. As per pro­vi­sions of Sec­tion 180 of the Com­pa­nies Act, 2013 every such com­pa­ny has to com­ply this pro­vi­sion immediately.

In Case of Default: Upto Rs. 10,000/- fine and where the con­tra­ven­tion is con­tin­u­ing one then a fur­ther fine which may extend to Rs.1,000/- per day after the first day.