ROC Kanpur Penalizes Company for Non-Compliance with Secretarial Standards on Board Minutes

The Registrar of Companies (ROC), Kanpur, has issued an adjudication order imposing financial penalties on Chartered Mercantile Mutual Benefits Limited and its officers. The order, passed under the authority of Section 454 of the Companies Act, 2013, addresses specific violations regarding the maintenance of Board Meeting minutes. The regulatory action highlights the mandatory nature of Secretarial Standard-1 (SS-1) and the consequences of failing to adhere to procedural norms prescribed under Section 118 of the Act.

The proceedings stemmed from an inspection conducted under Section 206(5) of the Companies Act, 2013. During the scrutiny of the company's records, the Inspecting Officer (IO) identified significant procedural lapses in how the Minute Book was maintained.

Under Section 118(10) of the Act, every company is statutorily required to observe Secretarial Standards with respect to General and Board Meetings. The inspection revealed that the company had contravened these standards in three specific areas: