Decoding Officer-in-Default under the Companies Act 2013

Quick Summary

Under the Companies Act, 2013, an “Officer in Default” refers to specific individuals within a company who can be held liable for any defaults or non-compliance with the Act’s provisions. As defined in Section 2(60), this includes:

• Whole-time directors
• Key managerial personnel
• Any director(s) specified by the Board who have consented to be accountable
• Any person charged with responsibility under the immediate authority of the Board or key managerial personnel
• Individuals whose directions or instructions the Board is accustomed to act upon, excluding those advising in a professional capacity
• Every director aware of contravention, either by participation or consent
• In matters of share issuance or transfer, the share transfer agents, registrars, and merchant bankers involved

This designation ensures accountability among company officers, emphasizing the importance of compliance with corporate regulations.