Corporate and Other LawsQuestion 5352 of 221
All Questions

1. To whom should have Mr. Rohan informed about his resignation? What could be the possible consequence for his non-compliance?

Options

AHe should have informed the registrar and JK Logistics Ltd. As a consequence of his failure, he is liable to a penalty not exceeding 5 lakhs.
BHe should have informed the registrar. As a consequence of his failure, he is liable to a penalty not exceeding ` 50,000.
CHe should have informed JK Logistics Ltd. as well as the registrar and C&AG. As a consequence of his failure, he is liable to a penalty not exceeding ` 5 lakhs.
DHe should have informed JK Logistics Ltd. as well as the registrar and C&AG. As a consequence of his failure, he is liable to a penalty not exceeding `50,000,
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option AHe should have informed the registrar and JK Logistics Ltd. As a consequence of his failure, he is liable to a penalty not exceeding 5 lakhs.

All Options:

  • AHe should have informed the registrar and JK Logistics Ltd. As a consequence of his failure, he is liable to a penalty not exceeding 5 lakhs.
  • BHe should have informed the registrar. As a consequence of his failure, he is liable to a penalty not exceeding ` 50,000.
  • CHe should have informed JK Logistics Ltd. as well as the registrar and C&AG. As a consequence of his failure, he is liable to a penalty not exceeding ` 5 lakhs.
  • DHe should have informed JK Logistics Ltd. as well as the registrar and C&AG. As a consequence of his failure, he is liable to a penalty not exceeding `50,000,

Ad

Detailed Solution & Explanation

As per Section 140(2) of the Companies Act, 2013, the auditor who has resigned from the company shall file within a period of thirty days from the date of resignation, a statement in the prescribed Form ADT-3 with the company and the Registrar.
Since JK Logistics Ltd. is a non-government company, the auditor is only required to file this statement with the company and the Registrar of Companies (ROC). The auditor is not required to file it with the Comptroller and Auditor-General of India (C&AG).
As per Section 140(3) of the Act, if the auditor does not comply with Section 140(2), he shall be punishable with a fine of not less than fifty thousand rupees (50,000\displaystyle \text{₹}50,000) or the remuneration of the auditor, whichever is less, and in case of continuing failure, with a further penalty of five hundred rupees (500\displaystyle \text{₹}500) for each day after the first during which such failure continues, subject to a maximum of five lakh rupees (5,000,000\displaystyle \text{₹}5,000,000 or 5 lakhs\displaystyle 5\text{ lakhs}).
Hence, Mr. Rohan is liable to a penalty not exceeding 5 lakhs\displaystyle 5\text{ lakhs} and must inform the Registrar and JK Logistics Ltd.
Hence, **Option A** is the correct answer.

More Questions from Corporate and Other Laws

Ready to Master Corporate and Other Laws?

Practice all 221 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free