Annual return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Hi experts,
I need your expert advise in regard to a private limited company which was incorporated 3 years ago.
In this company, unfortunately, the directors have not booked any business nor conducted any AGM or board meeting. Also the annual return of the company has not been filed for all the years since incorporation.

Please guide, as to what is the solution now:
- Can the directors start business in this company from now onwards? Will there be penalty for not conducting annual general meeting and not filing annual return?

- or would you advise to close this company and register a fresh company for the proposed business now.

Kindly guide

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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10 May 2013 Dear Friend,

First you need to check whether the status of the Company on MCA website in active or dormant?

Then if it is active you should file all the relevant forms as required up till the date.

Closing a Company is not a cup of tea and it requires hell number of formalities. You can visit a Company Secretary who will advise you on the practical aspects involved.

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2013 Hi,

i checked the MCA site - status of the company is not dormant.

I am concerned about the penalty for not conducting AGM (not even first AGM). Do we need to pay the penalty of Rs. 50000 for not conducting the AGM?

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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13 May 2013 Dear Friend,

If it is a private company and all members/directors are closely related then you can show that all meetings were held on time but forms were not filed.

This will be as good as meetings only on paper. However, there must be informal approval of all members/directors.

If this is not sure that you need to do a lot.

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