XYZ Ltd. has not filed Annual return for the financial year 2017-18. Write a note on the consequences of non-filing of Annual Return by the company in relation to a Director of the company, as per provisions laid under t

Consequences on the Director of XYZ Ltd. for Non filing of Annual Return As per section 92 of the Companies Act, 2013, XYZ Ltd. is required to file a copy of annual return with the Registrar, within sixty days from the date on which the annual general meeting of the company was held for the financial year 2017-18. If the company has not filed its Annual Return from the date by which it should have been filed with fee and additional fees, every officer including director of the company, who is in default shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of five lakh rupees. (Section 92). If the company has not filed its financial statement or Annual Return for continuous period of three financial years, then every person who is or has been director of that company shall not be eligible for reappointment as Director of that company or appointed in any other company for a period of five years from the date on which the said company fails to do so. (Section 164(2)).