We herewith enclose the details of Show Cause Notice received by the Company from Registrar of Companies, Coimbatore under Section 301(1) of Companies Act,1956.
KOVAI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Kovai Medical Center and Hospital (KMCH) received a Show Cause Notice from the Registrar of Companies, Coimbatore dated April 9, 2025. The notice pertains to FY 2013-14, alleging that the company's register of contracts in which directors were interested did not include the names of directors voting for, against, or remaining neutral on those contracts, as required under Section 301(1)(e) of the Companies Act, 1956. The notice has been served on the company and three directors (two Managing Directors and one Wholetime Director). The potential penalty under Section 189(6) of the Companies Act, 2013 is Rs. 25,000 per non-compliant director. The company has 15 days to respond and has stated it will file an appropriate reply within the prescribed timeline.
This is a procedural/compliance matter related to record-keeping from over a decade ago, with a negligible potential penalty of Rs. 25,000 per director. The company itself states there is no financial or operational impact. Shareholders are unlikely to see any material effect on the stock or business.