Get those Name Boards repainted - Compliance with Companies Act 2013
JUSTICE MC Chagla once remarked that every moment of our life is spent in either complying with or contravening some law.
It appears that almost all the Companies in India are contravening certain provisions of the Companies Act 2013.
As per Section 12(3)(a) of the Act,
Every Company shall paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;
So, if your name and address are painted in English, you must add a local language also.
As per Section 12(3)(c) of the Act,
Every Company shall get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications;
If the Company has changed its name in the last two years, the former name should also be included in the name boards and letters mentioned above.
What happens if you don't? In case of any default in complying with these requirements, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.
What happens after the maximum penalty of one lakh rupees is paid? Is no further penalty payable for life? Well, the law is not very clear on that.
The Law is already two months old and if you have not changed your name boards and letterheads, please do so before the sleuths of the Corporate Affairs Ministry swoop on you.