Delay in filing Form 5 and Form 23

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Ramana Rao C.V. (Querist)
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19 January 2008 If a company fails to file e form 5 and 23 within 30 days from the date passing resolution for increasing the share capital, what are the consequences the Company would face? Is there any provsion for levy of interest for the delayed period on the stamp duty payable?

R.V.RAO

R.V.RAO (Expert)
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19 January 2008 THE COMPANY HAS TO FILE FORM NO 23 FOR SPECIAL RESOLUTION PASSED AND THEN TO FILE FORM 5 ( WITH FEES OF INCREASE IN AUTH CAPITAL WHICH IS APPROX. RS. 50000 FOR EVERY ONE CRORE INCREASE ).
THE ROC WILL REMIND REPEATEDLYONECE HE COMES TO KNOW THAT YOU HAVE INCREASED THE AUTH,. CAPITAL( THIS HE COMES TO KNOW ONLY ON YOUR FILING FORM NO. 23) AND THEN FILE A CRIMINAL CASE AGAINST THE COMPANY AND DIRECTORS.
THIS HAS ACTUALLY HAPPENED IN A CASE IN ONE OF THE METROS.
THE COMPANY FACED THE HEARINGS SEVERAL TIMES AND ULTIMATELY REVERSED THE RESOLUTION OF INCREASE IN AUTH. CAPITAL WITH RETROSPECTIVE EFFECT.THEN ROC WENT TO HIGH COURT AND THE JUDGE RULED INVIEW OF RETROSPECTIVE RESOLUTION BY THE COMPANY CANCELING THE INCREASE IN AUTH. CAPITAL, THE COMPANY NEED NOT FILE FORM NO 5.

FOR THE DELAYED PERIOD OF NON PAYMENT FEES FOR INCREASE IN AUTH. CAPITAL 2% INTERST PER MONTH IS PAYABLE FOR FIRST YEAR AND THEN ONWARDS 2.5%P.M FROM 2 ND YEAR OF DELAY.
R.V.RAO

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