Rich Limited was just incorporated last week. The incorporation documents indicated that the Registered office would be located in their office premises in Chennai City. (ii) Due to operational reasons, Rich Ltd. operate

CS Professional · Advanced Company Law and Practice · PYQS · June 2019
Rich Limited was just incorporated last week. The incorporation documents indicated that the Registered office would be located in their office premises in Chennai City. (ii) Due to operational reasons, Rich Ltd. operates entirely from their factory premises on the outskirts of Chennai, without any presence at the registered office premises. Does it involve any contravention of the provisions of the Act ?

Answer & Explanation:

Further, Section 12(9) has been inserted in the Act effective from 2 nd November 2018 which provides that if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may without prejudice to section 12(8) cause a physical verification of the registered office of the company and if any default is found in complying with the requirements of section 12(1), initiate action for the removal of the name of the company from the register of companies. Therefore, unless Rich Ltd ensures full compliance of the provisions of Section 12(1) of the Act requiring maintaining a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it, it runs the risk of verification by the Registrar in which case it could lead to action to remove the name of the company from the register of companies. Rich Ltd should either ensure compliance of Section 12(1) or can initiate action to alter the registered office of the company to its actual business premises and comply with the requirements so that any action from Registrar can be avoided.

Topics: Company Law

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