Friday 15 December 2023

LEVY OF PENALTY OF RS. 20 LAKHS FOR NON-APPOINTMENT OF COMPANY SECRETARY BY THE MINISTRY OF CORPORATE AFFAIRS (MCA)

 

LEVY OF PENALTY OF RS. 20 LAKHS FOR NON-APPOINTMENT OF COMPANY SECRETARY BY THE MINISTRY OF CORPORATE AFFAIRS (MCA)

 



Matter in Line:


#SOLIS PHARMACHEN PRIVATE LIMITED CASE STUDY
#Non-Appointment of Company Secretary

The Ministry of Corporate Affairs (MCA) in the matter of SOLIS PHARMACHEN PRIVATE LIMITED has levied a penalty of Rs. 20 Lakhs for the Non-Appointment of Company Secretary

Introduction: The Registrar of Companies, Gujarat, Dadra & Nagar Haveli, under the Ministry of Corporate Affairs, has imposed a substantial penalty of Rs. 17.12 Lakh on Solis Pharmachem Private Limited for failure to appoint a Company Secretary, violating Section 203 of the Companies Act, 2013. This article provides an in-depth exploration of the order, including the hearing details, grounds of application, and the implications for the company and its officers.

Company Overview:

SOLIS PHARMACHEM PRIVATE LIMITED is a 4 Years old company, incorporated on 03 Dec 2019. It is classified as Private UnListed Indian Non-Government Company. Its authorized share capital is 25,00,00,000.00 ( 25.00 Cr ) and its paid up capital is 24,75,79,000.00 ( 24.76 Cr ). As per MCA the main line of business is Manufacture Of Chemicals And Chemical Products.

SOLIS PHARMACHEM PRIVATE LIMITED's Annual General Meeting (AGM) was last held on 02 Aug 2023 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 Mar 2023.

SOLIS PHARMACHEM PRIVATE LIMITED's unique Corporate Identification Number (CIN) is U24100GJ2019PTC111161 and its registration number is 111161. It is registered at RoC-Ahmedabad.

The company is registered with email address solis.pharmapvtltd@gmail.com.

The company is incorpozrated with the address Plot No. 4707/A/5; Sentogen Plot ; Near Lyka chokdi; Ankleshwar; Bharuch; Gujarat; 393002; India.

The current status of the company is Active.

 

Facts of the Case:

 

A suo-moto application filed by the company in GNL-1 vide SRN F63476352 dated 25.08 2023, the Company has issued only one Class of Shares i.e. Equity Shares having a face value of Rs. 10 Each and having the right to vote. The classification of the Company’s Share Capital in terms of its Authorized Share capital and issued, subscribed and paid-up Share Capital are as under:

 

A. The Authorized Capital: Presently, the Authorized Share Capital of the Company is Rs. 25,00,00,000 (Two Crore Fifty Lac) Equity shares of Rs. 10 (Rupees Ten) each; and

 

B. Issued, Subscribed and Paid up Share Capital: The issued, subscribed capital and Paid-up Share Capital of the Company is Rs. 24,75,79,000 (Rupees Twenty-four Crore Seventy Five Lac Seventy Nine Thousand Only) divided into 2,47,57,900 (Two Crore Forty-seven Lac Fifty-seven Thousand Nine Hundred only) Equity shares of Rs. 10 (Rupees Ten) each.

 

The presenting officer has submitted that the matter is fit for further proceedings as the company and its Officers in default are liable for penalty under section 203(5) of the Companies Act, 2013 for non-compliance with Section 203 of the company viz. SOLIS PHARMA CHEM PRIVATE LIMITED in the financial Year 2022-23 and 2023-24.

 

It is further submitted that there is reasonable ground to believe that the company and its officers in default have violated the provisions of Section 203 of the Companies Act, 2013 as noticed though the company has filed a suo-motto application for adjudication. In view of the facts narrated above, the company and its directors/ officers, in default are liable for a penalty under Section 203(5) of the Companies Act, 2013 and the Rules, made thereunder.

 

The Presenting Officer further submitted that it is observed from the Balance Sheet/ Financial statement as at 31.03.2023 the paid-up capital of the company is Rs. 24,75,79,000 and Turnover is Rs. 4,25,37,779. Hence, as per the Ministry’s Notification No. G.S.R. 700(E) dated 15.09.2022, in light of Companies (Specification of definition details) Amendment Rules, 2022 with respect to the provisions of Section 2(85) of the Companies Act, 2013, the company does not fall under the ambit of “small company”. Therefore, the provisions of imposing lesser penalty as per the provisions of Section 446B of the Companies Act, 2013 shall not be applied to the company.

 

Order Passed:

 

While adjudging the quantum of penalty under Section 203(5) of the Companies Act, 2013, the Adjudicating Officer shall have due regard to the following factors, namely,

 

a. The amount of disproportionate gain or unfair advantage, whenever quantifiable, made as a result of default.

 

b. The amount of loss caused to an investor or group of investors as a result of the default.

 

c. The repetitive nature of default.

 

With regard to the above factors to be considered while determining the quantum of penalty, it is noted that the disproportionate gain or unfair advantage made by the notice or loss caused to the investor as a result of the delay on the part of the notice to redress the investor grievance are not available on the record. Further, it may also be added that it is difficult to quantify the unfair advantage made by the notice or the loss caused to the investors in a default of this nature.

 

Having considered the facts and circumstances of the case and submissions made by the presenting Officer and after taking into account the facts cited above, the undersigned has reasonable cause to believe that the company and its officers in default have failed to comply with the Provisions of Section 203 of the Companies Act, 2013.

 

Hereby, a penalty of Rs. 7,12,000 is to be imposed for default.

 

AO is of the opinion that the penalty is commensurate with the aforesaid default committed by the Noticees:

 

The company/Officer is further directed to rectify the default failing which this office shall be proceeded further the matter in pursuant to Section 454A of the Companies Act, 2013 for the non-compliance of the aforesaid provisions of the Companies Act, 2013.

 

The noticees shall pay the amount of penalty individually for the company and its officers from their personal sources/ income by way of e-payment available on Ministry Website under “Pay Miscellaneous fees” category in MCA fee and payment Services under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 within 60 days from the date of receipt of this order and copy of this adjudication order and Challan/SRN generated after payment of penalty through online mode shall be filed in INC-28 under the MCA portal without further reference.

 

Conclusion:

The said case and the penalty imposed by the MCA reflect a strict warning to the other Companies regarding Compliance with the Companies Act, 2013. Companies must ascertain their default promptly, and the detailed analysis provides insights into the adjudicating officer’s considerations. This case emphasizes the well known thought : “IF YOU THINK COMPLIANCE IS EXPENSIVE, TRY NON-COMPLIANCE”

 





 

Thanks & Regards,

CS Ravi Garg

E-mail: csravi2014@gmail.com

 

Please do not print if not necessary. Let's contribute to a better society.

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

 

Thursday 14 December 2023

Intimation about migration of IEPF forms on MCA Version 3 portal

Notification from Investor Education and Protection Fund Authority

 

A Notice Dated: 08th December, 2023 has been issued from Investor Education and Protection Fund Authority (IEPFA) Office vide File No: 213661 w.r.t  Intimation about migration of IEPF forms on MCA Version 3 portal

1. It is to be informed that IEPF forms are likely to be migrated to MCA V3 shortly.

2. In this regard, IEPF-7 Form is likely to be merged with IEPF-1 form and transfer of the amount will be through MCA21 system. Similarly, IEPF-3 form is likely to be merged with IEPF-4 form.

3. Therefore, stakeholders are advised to complete the filing of forms IEPF-7 and IEPF-3 whenever due or where the form has been rejected/expired



Thanks & Regards,

CS Ravi Garg

E-mail: csravi2014@gmail.com

 

Note for Investors/ Claimant:-

Feel free to discuss any query related to Claim of Shares and Dividend from IEPF Authority.


CS Knowledge Platform-Ravi Garg: CLAIM OF UNCLIAMED DIVIDEND AND SHARES TRANSFERRED TO IEPF AUTHORITY (Series 2, Article 1 - 2023) (csravi2014.blogspot.com)

Tuesday 26 September 2023

EXTENSION OF TIMELINES BY SEBI FOR NOMINATION IN DEMAT ACCOUNT AND PHYSICAL HOLDING

 

Dear Investors,

 


SUBJECT: EXTENSION OF TIMELINES FOR: 

(i)                  Nomination in eligible demat accounts and

(ii)               Submission of PAN, Nomination and KYC details by physical security holders; and Voluntary nomination for trading accounts

 

Here came up again One of the Most awaited Circular issued by SEBI issued vide Ref No SEBI/HO/MIRSD/POD-1/P/CIR/2023/158 dated September 26, 2023 for which everyone was waiting since last Circular of SEBI wherein the timeline of September 30, 2023 was prescribed by SEBI circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/42 dated March 27, 2023.

 

Based on the representations received from Exchanges, Depositories, Brokers’ Associations and various other stakeholders, investors, Registrars Association of India and various other stakeholders, it has been decided to extend the last date for choice of nomination, submission of PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers to December 31, 2023.

 

 FOR TRADING AND DEMAT ACCOUNTS 

 

1.       SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021, stipulates that trading accounts and demat account which do not have ‘choice of nomination’ by September 30, 20231 shall be frozen.

 

2.       In this respect, based on the representations received from the Exchanges, Depositories, Brokers’ Associations and various other stakeholders, the following  has been decided:

 

2.1.  Submission of ‘choice of nomination’ for trading accounts has been made voluntary as a step towards ease of doing business;

 

2.2.  With respect to demat accounts, it has been decided to extend the last date for submission of ‘choice of nomination to December 31, 2023.

 

 

 FOR PHYSICAL SECURITY HOLDERS

 

3.       As regards physical securities, SEBI, vide circular no. SEBI/HO/MIRSD/MIRSD- PoD-1/P/CIR/2023/37 dated March 16, 2023, stipulated that folios shall be frozen if PAN, Nomination, Contact details, Bank A/c details and Specimen signature are not submitted by the holders by September 30, 2023.

 

4.       Based on the representations received from investors, Registrars Association of India and various other stakeholders, it has been decided to extend the last date  for submission of PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers to December 31, 2023.

 

5.       Stock Exchanges, Depositories, RTAs and Listed Companies are advised to:

a)      take necessary steps to implement the provisions of this circular, including making necessary amendment to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be;

b)      bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites;

c)       communicate to SEBI, the status of the implementation of the provisions of this circular; and

d)      monitor the compliance of this circular.

 

6.       This circular shall come into effect immediately in supersession of relevant provisions contained in various circulars issued by SEBI including Master Circulars issued for Stock Brokers and Registrars to an Issue and Share Transfer Agents dated May 17, 2023.

 

Thanks & Regards,

CS Ravi Garg

E-mail: csravi2014@gmail.com

 

:Note for Investors/ Claimant:-

Feel free to discuss any query related to Claim of Shares and Dividend from IEPF Authority.

 

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

 

Please do not print if not necessary. Let's contribute to a better society.

 

 

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Sunday 10 September 2023

CLAIM OF UNCLIAMED DIVIDEND AND SHARES TRANSFERRED TO IEPF AUTHORITY (Series 2, Article 1 - 2023)

 

 

 

CLAIM OF UNCLIAMED DIVIDEND AND SHARES TRANSFERRED TO IEPF AUTHORITY

(Series 2, Article 1 - 2023)

 

 


CONTENT OF THE ARTICLE:

 

(A) BRIEF NOTATION

(B) STATUTORY ASPECTS AND PROVISIONS IN BRIEF

(C) STATUTORY PROVISIONS:

(D) STEP-WISE PROCEDURE FOR REFUND OF SECURITIES FROM IEPF (UNCLAIMED DIVIDEND AND SHARES)

(E) Timelines as specified by SEBI for different requested by  Investor 

 

Covered in this Series 2; Article No 1

(F)  PRACTICAL ASPECTS / PROCEDURE ON THE PART OF SHAREHOLDER / CLAIMANT

(G) MOST IMPORTANT THINGS TO BE NOTED BY INVESTOR

(H) FAQS ON IEPF CLAIM PROCESS

 

Will cover in Next  Article, Series 2; Article No 2


(A)    BRIEF NOTATION

 

Dear Reader,

In this Article, we are back once again with an aim we had i.e, to create a Platform specifically for the Investors whose investments were transferred to Investor education and protection fund. Still we coming across several cases, where a General mass of people stand un-aware of their shareholding/investments which lies with the Company due to Non-updation of KYC and other several reasons. Once they came to know that their shareholding/investment have been transferred to IEPF, in some of the cases they stand helpless regarding the practical aspects  and the procedure to claim the same though online portal i.e, IEPF website which is currently a web-based Form and much easier as compare to the earlier situation.

 

After transfer of shares, shareholder seeks the reason of transfer and wish to claim the same form the IEPF authority for which form is available on IEPF Website. Here is responsibility of the Company Secretary cum Nodal Officer of the Company to provide solution and guidance to the concerned claimant/shareholder.

 

(B)      STATUTORY ASPECTS AND PROVISIONS IN BRIEF

 

MCA has issued Investor Education and Protection Fund Authority Rules, 2017. As per these rules, any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to Investor education and protection fund. Recently MCA has amended The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 dated 14th August, 2019 which was effective from 20th September, 2019.

 

Any person, whose unclaimed or unpaid amount has been transferred by the company to IEPF may claim their refunds from the IEPF authority. For claiming such amount, claimant needs to file web based Form IEPF-5 along with requisite documents. Access link to the refund webpage of IEPF Authority is www.iepf.gov.in/IEPFA/refund.html 

 

Hence once again we came here with the detailed and revised procedure to claim the shares and dividend from the IEPF authority and practical aspects of the same from the point of view of shareholder.

 

(C)      STATUTORY PROVISIONS:

 

As you are aware, dividend declared by the Company is remitted either electronically to the designated bank account or by sending dividend warrant to the registered address of the shareholders. 

 

As per Section 124(5) of the Companies Act, 2013, any dividend remaining unpaid/unclaimed for a period of 7 (seven) years is required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government. The Company has regularly uploaded on its website and also on the website of the Ministry of Corporate Affairs, Government of India, full details of such unpaid or unclaimed dividends before transferring to IEPF.

 

 


 

(D)     STEP-WISE PROCEDURE FOR REFUND OF SECURITIES FROM IEPF (UNCLAIMED DIVIDEND AND SHARES)

 

 


1.     Initially Claimant need to create a Login ID from the Link viz http://www.mca.gov.in/mcafoportal/login.do and Click Register Now, fill the details and submit.

 

2.     Login with the Portal and Click on Form IEPF-5 from the Tab MCA Services – Investor Services, a web based Form IEPF-5 shall be open

 

3.     Fill the complete and correct details in web Form IEPF-5 for claim of Shares, dividend or any other investments which have been transferred to IEPF. Read the instructions provided on the website/instruction kit along with the e-form carefully before filling the form.

 

4.     For filling-up the details in web Form IEPF-5, Claimant should be ready with the following information / documents:

 

a)     Name as per PAN and Fill accordingly as in First, Middle and Last Name and Copy of PAN

b)     Father’s name as per PAN

c)      Date of Birth as per PAN and Click on VERIFY PAN

d)     Enter Address, Mobile No,

e)      Aadhaar number if the applicant is an Indian citizen and passport/OCI or PIO card number if the applicant is NRI or foreigner

f)       Details of the company including the CIN no.

g)      Particulars regarding the shares to be claimed

h)     Particulars about the amount of dividend to be claimed

i)       Particulars of deposits and securities mentioned year wise, if any

j)       Details of bank account and in which the refund of the claim will be made in case of a Resident Indian.

k)     Details of Demat Account Number

 

5.     After filling the form, make requisite attachments and proceed further;

 

6.     Enter the Mobile No and email id for the OTP Verification, enter the OTP and submit.

 

7.     On successful submission of the Form IEPF-5, an acknowledgement challan will be generated indicating the SRN. Please note the SRN for future tracking of the form.

 

8.     Download the following documents:

(a)  Form IEPF-5,;

(b)  Acknowledgement;

(c)  Indemnity Bond.

 

9.     Get the documents signed and notarised as per the requirement and submit the same with Nodal officer of the Company along with KYC and other documents.


 

(E)      TIMELINES AS SPECIFIED BY SEBI FOR DIFFERENT REQUESTS BY  INVESTOR

 

“IGNORE OF LAW IS NO EXCUSE ~ BE AWARE”

 

We have compiled the different categories of Investor Service Request for helping the Investors/Claimant to know their right to seek feedback from respective Company or its Registrar & Share Transfer Agent (R&TA).

 

Timelines

SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/670 of November 26, 2021

INVESTOR SERVICE REQUEST

Nature of Service

Expected Timelines (Number of days)

Processing of Transmission Request (SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/65)

30

Processing of Issue of Duplicate Security Certificate Request (Letter of Confirmation)

30

Processing of Dematerialization Request

15

Processing of Remat Request

30

Processing of Transposition Request

15

I. PROCESSING of REQUEST FOR CHANGE IN UPDATION OF

A. Name

30

B. Signature

30

C. Nomination

30

D. Contact Details (Address, E-Mail Address and Mobile Number)

15

E. Bank Account Details

15

II. PROCESSING of REQUEST FOR UPDATION of PAN

15

Processing of Re-Validation of Dividend I Interest I Redemption Instruments And Sending The Remittance Request Files To The Bank I Company

15

GRIEVANCE REDRESSAL

Providing Response To The Inquiries of The Investors And Redressal of Grievance

30

OTHER OPERATIONAL ACTIVITIES

Allotment of Securities (IPO)

6

INTIMATION REGARDING DISTRIBUTION of CORPORATE BENEFITS (DIVLDEND, BONUS, STOCK SPLIT)

A. E-Mail Communication

15

B. Physical Communication

30


-:Note for Investors/ Claimant:-

Feel free to discuss any query related to Claim of Shares and Dividend from IEPF Authority.

 

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

 

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Ravi Garg

  LEVY OF PENALTY OF RS. 20 LAKHS FOR NON-APPOINTMENT OF COMPANY SECRETARY BY THE MINISTRY OF CORPORATE AFFAIRS (MCA )   Matter in Line:...