| Sl.No. | Nature | Compliance | Consequenes |
|---|---|---|---|
| 1 | Alteration of Objects Clause: Company formation document “Memorandum of Association” has an “Object Clause” which defines the nature of business that company undertakes. Before April 2014, a simple resolution with consent of Board of Director would have sufficed to undertake any other business activity beyond the coverage of main object clause. |
Now, with effect from 1st April 2014 all such Companies who were/are carrying of activities other than principal business activities as mentioned in the other objects are required to alter the main objects and include such activities therein. |
If the provisions are not complied, such business activity shall be treated as ultra-virus. |
| 2 | Displaying Company Identity CIN on letter heads, invoices etc. |
Section 12(3) (c) of the Act provides that every company shall get its Name, Address of its Registered Office and the Corporate Identity Number (CIN) along with telephone number, fax number, 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. |
In case of any failure to quote the CIN number, penalty of Rs. 1,000 per day shall be imposed on the defaulting company and on every officer in default for every day during which the default continues. Maximum penalty imposable shall not exceed Rs. 100,000/- |
| 3 | Deposits Taken from Public | The Companies which have accepted deposit from public were required to report outstanding deposits, interest thereon by filing a return with the office of Registrar of Companies up to 30th June 2014. These Companies have to refund the outstanding deposit with interest within a period of one year i.e. on or before 31.3.2015 |
In case of default, penalty can be Rs.1 Crore up to Rs.10 Crore |
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