THREE SEASONS WAS FINED BY ROC FOR NOT OBTAINING A DECLARATION FROM INDEPENDENT DIRECTORS UNDER SECTION 134 (3) OF COMPANIES ACT ,2013

 THREE SEASONS  WAS FINED BY ROC FOR

 NOT OBTAINING A DECLARATION FROM

 INDEPENDENT DIRECTORS UNDER

 SECTION 134 (3) OF COMPANIES ACT ,2013

THREE SEASONS  EXIM LIMITED VS ROC, VIJAYAWADA

FACTS OF THE CASE

Under Section 134(3) of India's Companies Act, 2013, the Board's Report attached to financial statements must include a statement confirming that independent directors have given a declaration as required by Section 149(7), affirming their independence and that they meet the criteria for independence.

PURPOSE OF THE DECLARATION

This declaration ensures independent directors are genuinely free from company influence, safeguarding minority shareholders, and is crucial for governance, being a mandatory disclosure in the annual report, with failure leading to penalties.

INDEPENDENT DIRECTORS' DECLARATION (SEC 149(7)):

Each Independent Director must confirm in writing to the Board that they meet the criteria for independence, are not disqualified, and have no other relationships that could interfere with their independent judgment.

This is a mandatory disclosure within the Board's Report, which is attached to the financial statements presented at the Annual General Meeting (AGM).

BOARD'S CONFIRMATION:

The Board's Report must explicitly state that such declarations have been received from all Independent Directors.

PENALTY FOR THE LAPSE

Roc ,Vijayawada imposed fine on Three Seasons Exim Rs`300,000 on the company and   `50,000 each on four directors in default for not obtaining a declaration from its independent directors to the board’s report for the financial year 2022-2023.

R V SECKAR, FCS, LLB 79047 19295