Incorrect info in company filings to attract action

Incorrect info in company filings to attract action

To curb instances of companies submitting misleading information in filings, the government has said that strict action will be initiated against professionals who certify such submission.

Registered chartered accountants, cost accountants and company secretaries have been allowed by Ministry of Corporate Affairs (MCA) to authenticate the documents filed with it in the electronic mode.

The new Companies Act, wherein most of the provisions have come into effect from April 1, has stringent clauses to ensure that correct information is provided by corporates while submitting the required documents to MCA.

Strengthening efforts to ensure integrity and correctness of filings, the Ministry on May 7 asked all regional directors and Registrars of Companies to carry out a "quick inquiry" against professionals who have certified documents with false or misleading information.Action will also be initiated in cases where company filings have omitted material facts or have incomplete information.

According to a circular on May 7, violations could result in debarment of the concerned professional from filing any document on the MCA portal.

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