Crackdown on Companies: RoCs Takes Strict Actions Against Violators

Registrars of Companies (RoCs) in India are cracking down on companies that fail to disclose mandatory information after incorporating, as well as those that skip holding at least four board meetings annually, according to regulatory orders. RoCs have taken disciplinary action against firms, issuing numerous penalty orders since the beginning of the year. Companies that fail to pay their penalty within three months expose themselves to additional fines and other penalties. There are, however, provisions for small firms and startups, which are liable to pay much smaller fines. Since April, nine penalty orders have been issued against companies for alleged violations of mandatory disclosure requirements, including proof of share payment and verification of registered office. The law also requires businesses to hold four board meetings annually, and failure to do so has led to the issuance of several penalty orders, including penalties for company secretaries.