🚨 Penalty Alert: Failing to Appoint a Woman Director Can Be Costly!

In today’s rapidly evolving regulatory environment, compliance with corporate governance norms is not just a legal obligation—it’s a strategic necessity. One such mandate under the Companies Act, 2013 is the timely appointment of a woman director on the board of specified companies. Non-compliance with this requirement can lead to serious financial and reputational consequences.

📌 Case in Point: Penalty of ₹3.57 Lakh Imposed

The Registrar of Companies (RoC), Mumbai, recently imposed a penalty of ₹3.57 lakh on Sajjan India Limited for failing to appoint a woman director within the stipulated timeframe. The company, with a turnover exceeding ₹1,580 crore, delayed filling the vacancy left by a resigning woman director for over 215 days.

Despite citing the difficulty in finding a suitable replacement, the RoC did not accept this explanation. The penalty breakdown included:

  • ₹1.57 lakh on the company

  • ₹1 lakh each on the CEO and CFO

The company was directed to make the payment within 90 days, with an appeal window of 60 days.

📘 What Does the Law Say?

Under Section 149(1) of the Companies Act, 2013, the following companies are required to appoint at least one woman director:

  • Listed companies

  • Public companies with:

    • Paid-up share capital of ₹100 crore or more, or

    • Turnover of ₹300 crore or more

The woman director must be appointed within 6 months from the date of incorporation or the date on which the criteria are met.

⚠️ Risks of Non-Compliance

Failing to comply with this requirement can lead to:

  • Heavy monetary penalties

  • Personal liability for directors and key managerial personnel

  • Negative impact on brand reputation and investor confidence

  • Difficulty in future regulatory clearances and audits

✅ Stay Compliant with Taxla Services

Navigating corporate compliance can be complex, but with Taxla Services by your side, you don’t have to worry. Our expert consultants provide:

  • End-to-end compliance solutions

  • ROC filing support

  • Director appointment documentation

  • Legal advisory under the Companies Act

Ensure your business stays legally compliant and governance-strong.

📞 Contact us today: +91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com
📍 Location: 19, SBI Colony 3rd Street, Saligramam, Chennai – 600093

#CompanyCompliance #WomanDirectorRule #CompaniesAct2013 #ROCCompliance #CorporateGovernance #TaxlaServices #ChennaiAuditor #DirectorAppointment #PenaltyAlert #StayCompliant #BestAuditorInTamilnadu



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