ABC Technologies Pvt Ltd. is a private company with authorised capital of ₹19,00,00,000 divided into 1,90,00,000 of equity shares of ₹10 each. The issued, subscribed and paid up share capital of the company is ₹8,00,00,0

Section 203 of the Companies Act, 2013 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personals) Rules, 2014. Under the provisions of Section 203 of the Companies Act, 2013 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personals) Rules, 2014, it is mandatory to appoint Company Secretary in case if the paid up capital of a Company is ₹10 crore or more. This limit has been increased from ₹5 to ₹10 crores w.e.f. 1st April 2020. Since ABC Technologies Pvt Ltd. is a private company and has a paid up capital of not more than ₹10 crore, there is no default for non-compliance of the provisions of Section 203 of the Companies Act, 2013 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personals) Rules, 2014 w.e.f. 1st April, 2020. However, prior to 1st April, 2020, the company was non-compliant as the threshold for appointment of Company Secretary till 31st March, 2020 was ₹5 crore. The justification by the company that "the company could not appoint although it has been making regular efforts to identify and appoint suitable candidate for the position" does not hold good. As per Section 203(5) of the Companies Act, 2013, if any prescribed company contravenes the provisions of this section relating to appointment of Key Managerial Personnel (KMP) (KMP includes company secretary also), a penalty of ₹5 lakhs can be imposed on the company in this case ABC Technologies Pvt Ltd. Also penalty of ₹50,000 on Director or key managerial person who is in default and further fine up to ₹1,000 for each day of default in case the contravention continues upto a maximum of ₹5 lakhs will be imposed.