9 Others Filing of Documents with Registrar Rule 7 of Companies (Registration XXIV 398 All No Offices and Fees) Rules, 2014 Rule 7 of Companies (Registration should be amended do away with Offices and Fees) Rules, the requirement of mentioning the 2014mandatorily requires address of address in such cases director etc. that is signed by him to be mentioned in every document that is filed with the Registrar Applicability of this rule is leading to overburdening the directors, etc. as mentioning of DIN / Membership No. is sufficient. This requirement should be done away with as many documents do not contain enough space and it just increases the documentation. 10 Raising In case a company offers to receive share The penalty should be:- III 42 All No of monies through private placement a Capital, detailed compliance is required u/s 42 Amount involved in offer or Rs. 2 Fund read with rules. Crores whichever is LESSER. Non-compliance thereof results in penalty to the extent of amount involved in offer or Rs. 2 Crores whichever is HIGHER. This is an undue hardship when amounts offered could be as less as Rs. 1 Lac. This penalty should be reduced to logical extent. 11 Penal provisions have increased Penal Provisions should be XXIX 454 All No drastically under the new Act and reduced and soften with specific prosecution has been made mandatory reference to OPC, Private under various provisions. Companies and their Auditors. Huge penalties have been provided even For OPC, small and private
9 Others Filing of Documents with Registrar Rule 7 of Companies (Registration Offices and Fees) Rules, 2014mandatorily requires address of director etc. that is signed by him to be mentioned in every document that is filed with the Registrar Applicability of this rule is leading to overburdening the directors, etc. as mentioning of DIN / Membership No. is sufficient. This requirement should be done away with as many documents do not contain enough space and it just increases the documentation. Rule 7 of Companies (Registration Offices and Fees) Rules, 2014 should be amended do away with the requirement of mentioning the address in such cases XXIV 398 All No 10 Raising of Capital, Fund In case a company offers to receive share monies through private placement a detailed compliance is required u/s 42 read with rules. Non-compliance thereof results in penalty to the extent of amount involved in offer or Rs. 2 Crores whichever is HIGHER. This is an undue hardship when amounts offered could be as less as Rs. 1 Lac. This penalty should be reduced to logical extent. The penalty should be:- Amount involved in offer or Rs. 2 Crores whichever is LESSER. III 42 All No 11 Penal provisions have increased drastically under the new Act and prosecution has been made mandatory under various provisions. Huge penalties have been provided even Penal Provisions should be reduced and soften with specific reference to OPC, Private Companies and their Auditors. For OPC, small and private XXIX 454 All No
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