E-Active Compliant For Professionals By Divyansh Sachdeva

Dear Professional Colleagues,

With the rapid growth and development in the Indian Industry there has been always a need of upgradation through the notifications, circulars, amendments on the daily basis to cope up with the fastest growing economies which have also increased the responsibility of the Professionals especially Chartered Accountant in Practice, Company Secretary in Practice and Cost accountant in Practice in their respective fields.

One such enhancement in responsibility has been placed on Professionals through the upcoming popular notification {G.S.R.(E). dated 21st day of February 2019 in the exercise of the powers conferred by sub-section (9) of section 12 and subsections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2O13)}by the Central Government.

Whereby every company incorporated on or before the 31st day of December, 2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.04.2019.

With the Introduction of this Active Compliant Form, One more time there is a need for the veracity and authenticity of the respective forms or to be Certified by the members of the most Honourable Authority(ies) of India i.e ICAI/ICSI/ICMAI.

Further, the Person certifying the form must BEWARE about the Causes and Consequence of the false information given in the respective e-Form ACTIVE.

The person must ensure the authenticity and checks of the following items filled up in the Form:

  • The identity of the company and its address based on the perusal of the original of the attached documents.
  • All required attachments have been completely attached to this application.
  • Provisions of the companies Act, 2013 and rules thereunder for the subject matter of these forms and matters incidental thereto.
  • The above particulars (including attachment(s)) from the original records maintained by the Company/applicant which is the subject matter of this form and found them to be true, correct and complete and no Information material to this form has been suppressed.
Some of the other items are also to be taken care of:

  • Updated and active e-mail id of the Company.
  • Copy of the form is kept for all future reference with the professional if any
Note: The professional certifying the Form shall be liable for action under section 448 of The companies Act, 2013 for wrong certifications if any found at any stage which Clearly States:

If in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement

              (a) which is false in any material particulars, knowing it to be false; or

              (b) which omits any material fact, knowing it to be material,

he shall be liable under section 447.
Meaning thereby, section 448 also marked the liability of the Professionals under Section 447 which further states for the following penal provisions:
Any person who is found to be guilty of fraud shall be punishable with 

  1. Imprisonment not less than 6 months extendable to 10 years; and
  2. Fine for the Amount involved extendable to the 3 times the amount involved
Further, Fraud if involved any public Interest

     a) Imprisonment shall not be less than 3 years.
Second Proviso to this Section States that if fraud does not involve Public Interest and amount is below 10 lacs only or 1 per of the turnover then:
  1. Imprisonment for a term extendable to five years; or
  2. Fine extendable to 50 lakh rupees; or
  3. Both (a) and (b).
Note: The Crux is to avoid the misuse and maintain the uniformity in the professionalism and providing Honour and Trust to the respective body of our growing economic society.

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