IN RE Vs. MS AMITA GARG

JUDGEMENT

(1.) The petitioner, Ms. Amita Garg, was a Director in more than 20 Companies. This is in gross violation of Section 165 of the Companies Act 2013 which limits any individual from being a Director in more than 20 companies. As per the said provision, every any person who was on the Board of directors of more than 20 Companies was required to resign-from companies in excess of twenty by 31st March 2015. The applicant has since taken steps to resign from the directorship of some companies so as to adhere the time limit as per Statutory requirement.

(2.) The applicant who admits this default on account of ignorance, has suo moto filed the present petition under section 441 of the Act with the prayer to compound the default.

(3.) The offence is punishable u/s 165(6) of the Companies Act, 2013 which provides for an imposition of a fine which shall not be less than Rs.5,000/- but which may extend to Rs.25,000/- for every day after the first during which the contravention continues. Accordingly the office of the RoC has recommended the imposition of a fine of Rs. 14,75,000/- on the petitioner for continuing default of 159 days.