Apni Law Staff asked 2 years ago
Our non-banking finance company (NBFC) is up for sale. The potential buyer wants to add two directors retroactively to the board, dating back to June 2015. Our annual general meeting (AGM) has already taken place, and all the required documents have been filed. Is this possible? What penalties and actions could the Registrar of Companies (ROC) take? How much would the compounding charges be, assuming the regional director handles it? What is the total cost of these defaults?
Best Answer
Apni Law Staff answered 2 years ago
Adding directors retroactively is not permissible under Indian law. The ROC could initiate proceedings against the company and directors for non-compliance, leading to penalties and actions like prosecution, fines, or even company closure. The compounding charges for such defaults are based on the gravity of the offense and vary depending on the regional director’s discretion, making it impossible to estimate a fixed cost.
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