Companies Amendment Bill – section 403

One of the provisions of the Companies Amendment Act, 2017 which has been passed by the Lok Sabha is as follows:
Presently, under Section- 92 (Filing of Annual Return), section 137 (filing of audited accounts) and other sections (filing of other forms) Companies shall be required to file the Annual Return within 60 days of AGM audited accounts by 30 days and other documents by 30 days from the date of event. In the case of auditors appointment and change of registered office it is 15 days from the date of the event.
First proviso to section 403 of the Companies Act, 2013 gives a further 270 days for filing of the said form by paying additional filing fee. Which means effectively companies are given 270 days plus the initial period to complete the filings.

Now under the Companies Amendment Act, 2017, this proviso is being sought to be removed by the following i.e. the additional period of 270 days is being removed from the section.
“Provided that where any document, fact or information required to be submitted, filed, registered or recorded, as the case may be, under section 92 or 137 is not submitted, filed, registered or recorded, as the case may be, within the period provided in those sections, without prejudice to any other legal action or liability under this Act, it may be submitted, filed, registered or recorded, as the case may be, after expiry of the period so provided in those sections, on payment of such additional fee as may be prescribed, which shall not be less than one hundred rupees per day and different amounts may be prescribed for different classes of companies :
 
Provided further that where the document, fact or information,as the case may be, in cases other than referred to in the first proviso, is not submitted, filed, registered or recorded, as the case may be, within the period provided in the relevant section,it may, without prejudice to any other legal action or liability under this Act, be submitted, filed, registered or recorded as the case may be, on payment of such additional fee as may be prescribed and different fees may be prescribed for different classes of companies:
 
Provided also that where there is default on two or more occasions in submitting, filing, registering or recording of the document, fact or information,it may, without prejudice to any other legal action or liability under this Act, be submitted, filed, registered or recorded, as the case may be, on payment of a higher additional fee, as may be prescribed and which shall not be lesser than twice the additional fee provided under the first or the second proviso as applicable.”;
The import of these amendments is that if the documents are not filed with the specified periods given in the respective sections, then the additional fee shall be Rs.100/- per day and different amounts shall be specified for different classes of companies.
Morever, where there is a default on two or more occasions in filing the documents, the additional fees payable will become higher but not less than twice the additional fee provided above. So it shall be not less than Rs.200/- per day, if there is a default on two or more occasions. There is also a threat of a legal action against the Directors and officers in default.
This bill is still with the Rajya Sabha. After it is passed by the RS, it will go to the President for his assent and then the MCA will notify the provisions of the Amendment Act. Only on notification by the MCA in the official gazette will the amended provisions come into effect.

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Filed under company law, company secretary, compliance, Uncategorized

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