ROC Delhi has issued penalties for a company's failure to establish mandatory Audit and Nomination Committees, emphasizing the necessity of compliance with corporate governance regulations.
Penalties for Non-Compliance in Forming Committees
The Registrar of Companies (ROC) Delhi has enforced penalties against a company for not forming required Audit and Nomination Committees despite surpassing the stipulated turnover threshold. Under Sections 177 and 178 of the Companies Act, the establishment of these committees is mandatory for companies above certain financial limits.
The ROC's decision underscores the importance of compliance with corporate governance standards that aim to enhance accountability and protect stakeholder interests.
Company secretaries and legal practitioners must ensure timely adherence to such statutory requirements to avoid penalties related to governance failures.
Citations
- Committee Formation Penalty (2026) ROC Delhi
