Updated on April 07, 2025 04:37:16 PM
Event based compliances are a type of compliances which are different from the annual compliances and occur due to some major changes and events in the company. This will be complied with during the happening of any particular event in the company and these events are unforeseen and can happen anytime in the company.
Some of the examples of event based compliances are Change in board of directors i.e.,appointment ,resignation and appointment of a managing director, Alteration in AoA and MoA, change in statutory auditors, transfer of shares, change in name of the company, change in authorised capital. An imitation must also be given to the Registrar of the companies after any changes in the events of the company.
In every company there are mainly two types of compliances that need to be filed with the ROC and these are:
Event-based compliances in a company refer to specific compliance requirements that arise from various events or actions taken by the company.
These obligations typically involve notifying authorities, filing necessary documents, or taking specific actions to ensure compliance with legal and regulatory frameworks.
Here are some examples of event-based compliances in a company:
The aforementioned list of events requires necessary filing of compliances with the Registrar of the companies. It is mandatory to update company documents and intimate any changes made in the company to the ROC by filing relevant forms within a given time period.
| Section | Compliance Event | Explanation |
|---|---|---|
| Section 12 | Registered Office | Every company must have a registered office within India and must notify the Registrar of Companies (RoC) of its registered address within 30 days of incorporation. Any change in the registered office address must be intimated to the RoC within 30 days of such change. |
| Section 92 | Annual Return | Every company is required to prepare an annual return containing specified information, such as the company's financials, shareholdings, directors, etc. The annual return must be filed with the RoC within 60 days from the date of the annual general meeting (AGM). |
| Section 149 | Appointment of Directors | Companies must comply with the provisions related to the appointment, retirement, and qualifications of directors, including conducting board meetings, maintaining records, and filing necessary forms with the RoC. |
| Section 165 | Number of Directorships | Directors are subject to restrictions on the number of directorships they can hold simultaneously in different companies. Non-compliance with the prescribed limits may result in disqualification of the director. |
| Section 173 | Meetings of the Board | Companies must hold regular board meetings, with a minimum of four meetings in a year, ensuring proper notice, agenda, and minutes are maintained. The Act also prescribes specific provisions for board meetings through video conferencing or other electronic modes. |
| Section 167 | Vacation of Office of Director | If the director of the company absent himself from all the Board meetings held within a period of 12 months or so, regardless of seeking a leave of absence, he shall vacate the office of director. |
| Section 139 | Appointment of Auditors | Companies must appoint statutory auditors and comply with the provisions related to their appointment, rotation, and remuneration. The auditors are responsible for examining and reporting on the financial statements of the company. |
| Section 186 | Loans and Investments by Company | Companies must comply with the regulations concerning loans to directors, loans and investments in other companies, and guarantees provided by the company. Prior approval from the board of directors and, in some cases, shareholder approval is required for certain transactions. |
| Section 135 | Corporate Social Responsibility (CSR) | Companies meeting specific financial thresholds are required to spend a certain percentage of their profits on CSR activities. The Act mandates the formulation of a CSR policy, establishment of a CSR committee, and reporting on CSR activities in the annual report. |
| Section 204 | Secretarial Audit | Certain companies, based on their size or other criteria, are required to undergo a secretarial audit conducted by a qualified company secretary. The secretarial audit ensures compliance with applicable laws, rules, regulations, and other guidelines. |
| Section 196 | Appointment of Managing Director | Companies must comply with the provisions related to the appointment, remuneration, and qualifications of managerial personnel, including managing directors, whole-time directors, and managers. |
There are several benefits of annual and event based compliance in a company and some of the benefits of event based compliances are mentioned below:
The required fee for event based compliances will entirely depend on the event for which you want to file compliance with ROC. If the event is in addition to the director or any other remember then there will be a cost involved in creation of DSC, DIN, Govt fees as well as professional fees. On the same lines the incurred cost of Filing the event based compliance will solely depend on the event of occurrence.
To know more about the actual fees for event based compliance in any company, you may contact our team to get the required information.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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Conclusion
Navigating event-based compliances is a crucial aspect of running a successful and compliant business. From mergers and acquisitions to fundraising activities and changes in ownership structure, events within a company can trigger a range of compliance obligations. In this blog, we have explored the importance of event-based compliances in a company and provided insights into managing them effectively.
For any type of event based compliance or annual compliance filing, just contact our team at Professional Utilities to discuss the steps to file event based compliances in a company to avoid any penalty.
Also Read:
Event based compliances are those compliances which must be met at the occurrence of certain events in a company and the information must be intimated to the ROC by filing proper documents.
The required fee for filing event based compliances may vary from event to event, but in general, the fees for filing event based compliances in a company will include government fees as well as professional fees.
There are mainly two types of compliances in a company- Annual Compliances and Event-based Compliances.
Event based compliance has to be filed when any event or change happens in the company. For instance when there is addition or removal of directors, or any change in the capital of the company etc.
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