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CS Professional · Compliance Management, Audit and Due Diligence · Signing and Certification

CS Meera Iyer, a practising company secretary, certifies the annual return of Kaveri Foods Ltd, a listed company, although she noticed that the return does not disclose the shareholding pattern correctly. Under section 92, what is the consequence for her?

She is liable to a penalty of two lakh rupees under section 92(6). Certifying an annual return that does not conform to the section or rules attracts this penalty on the practising company secretary; the late-filing penalty applies to the company and its officers instead.

  1. AShe is liable to a penalty of two lakh rupeesCorrect
  2. BShe is liable to a penalty of ten thousand rupees with a daily penalty
  3. CShe faces no consequence as the company bears sole responsibility
  4. DShe is liable only to a penalty of fifty thousand rupees

Explanation

Section 92(6) provides that a company secretary in practice who certifies the annual return otherwise than in conformity with the section or its rules is liable to a penalty of two lakh rupees. The ten thousand rupee penalty with daily additions applies to the company and officers for late filing under sub-section (5), not to the certifier.

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