- > Change is a constant phenomenon that we experience in every sphere we are a part of and business is no exception to that. Private limited companies can have events such as change in director or change of the registered office. The Government of India considers it essential to track such events and has mandated certain event-based compliances for a private limited company which need to be met by a given deadline to avoid penalties.
- > If these Change in Object Clause for a private limited company are not met, or there is a delay, penalties levied can include additional fees or a compounding of offence. As per The Companies Act, 2013, the penalty/fine or imprisonment will be levied on the officer in default and/or the company. The Managing Director or Executive Director are considered to be the “officer in default” and in their absence, all directors and KMP are considered as the “officer in default”. Event-based compliances are as essential as filing business income returns. Delay in filing of forms can cost a private limited company an additional filing fee as well.