Recently, Dorin India Private Limited was hit with a hefty fine by the Indian Ministry of Corporate Affairs for their protracted delay in selecting a company secretary. This article goes into great length about this case, looking at the facts underlying the delay, the legal background, the punishment considerations, and the final order.
In March 2014, Dorin India Private Limited—henceforth referred to as “the company”—was founded. Gurgaon, Haryana, served as its registered office. The firm only engaged a full-time firm Secretary on January 4, 2021, which was a notable delay given that it had a sizable paid-up capital.
The issue concerns a 794-day gap between November 2, 2018, and January 4, 2021, in order to comply with Section 203 of the Companies Act, 2013. On May 30, 2023, the MCA sent out a Show Cause Notice (SCN), and on June 15, 2023, the corporation responded.
The company’s approved representatives and a director, Mr. Keiichi Lizuka, made their case during a hearing on September 12, 2023. They said that Mr. Lizuka was in charge of following Indian legislation, such as the Companies Act of 2013, and they asked for forgiveness because of the business’s prior financial setbacks.
The case study took into account a number of factors, including:
Following the analysis, the adjudicating officer assessed the following penalties:
Finally, in accordance with Section 203 of the Companies Act of 2013, the Ministry of Corporate Affairs has adopted a strict position regarding the appointment of Company Secretaries. Due to the high penalties imposed due to Dorin India Private Limited’s delay, it is imperative that business sector regulations be followed on time.
This article has covered the issue of Dorin India Private Limited, which was hit with a 15 lakh penalty by the Ministry of Corporate Affairs after a 794-day delay in selecting a company secretary. The article outlined the case’s facts, reviewed the criteria taken into account when determining penalties, and finished with a discussion of the importance of compliance for businesses.