ROC Pune has imposed a reduced penalty for belated filing of e-Form MGT-14 by a start-up under Section 117(1), recognizing the applicability of leniency provisions for small companies and start-ups.
Reduced Penalty Granted for MGT-14 Filing Delay
The Registrar of Companies (ROC) Pune has exercised discretion in imposing a reduced penalty for a start-up that delayed the filing of e-Form MGT-14 concerning a Special Resolution under Section 117(1) of the Companies Act.
In this instance, Section 446B, which caters to the leniency for small companies and start-ups, was aptly invoked, providing the company a reprieve from the standard penalty applicable to larger entities.
This ruling encourages compliance among start-ups while ensuring penalties remain proportionate to the company's size and capacity. Legal practitioners should consider this precedent when advising start-up clients on compliance matters.
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