March 04, 2020
1. MCA issues clarification with respect to prosecutions/internal adjudication proceeding issued against Independent Directors (IDs), Non-Promoters, and Non-Executive directors (NEDs)
Through this circular, MCA has issued Standard Operating Procedure to be followed by the Registrars with respect to initiation of proceedings against “Officer in default”, defined under Section 2(60) of the Companies Act, 2013. This is to ensure that civil or criminal proceedings are not unnecessarily initiated against the IDs or the NEDs, unless sufficient evidence exists to the contrary. Aforesaid circular is integrated in our free-to-use website ca2013.com for your ready reference.