Company Fined for Not Mentioning Its Integrated Poultry Farming Business Activities in MOA
The Registrar of Companies (ROC), Gwalior, issued a penalty order against a company for violating Section 13 of the Companies Act, 2013, read with Section 13 of the Companies Act, 2013, read with Section 10 of the Companies Act, 2013.
The company, Simran Agrovet Limited, was engaged in integrated poultry farming business activities starting from January 21, 2022. However, this activity was not mentioned in the main objective clause of its Memorandum of Association (MOA). There was only a mention of “poultry feed,” which does not fully include integrated poultry farming.
As per section 13 read with section 10 of the Companies Act, 2013, it mandatorily requires a company to run and operate according to its stated objectives.
The company voluntarily informed about the above violation through an adjudication application under section 454 of the Companies Act. Once the company realised its non-compliance, it passed a special resolution and modified the clause. The company also obtained a new certificate for the alteration of the main object clause of the MOA by the MCA.
However, the company had violated the provisions of the Companies Act, and the ROC held them liable for a penalty under Section 454 of the Companies Act, based on the period of the default. Since the company falls within the definition of a small company, its penalty was reduced under Section 446B of the Companies Act, 2013.
Accordingly, the ROC imposed a penalty of Rs 1,00,000 on the company and Rs 25,000 each on its 4 directors for the violation of Section 13 of the Companies Act, 2013, read with Section 10 of the Companies Act, 2013. The directors were directed to rectify the default and pay the penalty within 90 days through the ‘e-Adjudication’ facility on the MCA website.