Enforcement Action for Breaches of Annual Return Filing
ACRA is taking serious enforcement against company who fail to file their Annual return and conduct Annual General Meeting (AGM).
Other than penalty or composition fine , company may face the following enforcement :
Attendance to Court after composition fine offered
ACRA will send notice to the company registered address and offer composition fine .
If there is no action taken, relevant director will required to attend the court .
Attendance to Court WITHOUT offer of composition fine
You may received notice to attend court without offered of composition fine .
If director fail to appear in court, Warrant of arrest will be issued by the court .
In court, the director can decide whether to plead guilty or claim trial to the charges. If the director is convicted by the court, he may be fined up to a maximum of $5,000 per charge.
DISQUALIFICATION OF DIRECTOR
ACRA may disqualified appointed director who :
- convicted 3 or more brenches in filing within 5 years .
- at least 3 companies struck off by ACRA within 5 years
Disqualified director will NOT allowed to be director for 5 years with effect from the date of conviction.
Please click here for “Disqualification FAQ”
COMPANY WILL BE CLOSE BY ACRA ACRA is empower to close company which fail to lodge in Annual return and no action taken for consecutive years.
A notice will be publish , click here for more detail
Relevant company appointed director will be disqualify to hold any new directorship for 5 years with effect from the 3rd company being struck off .
SENTENCED WITH IMPRISONMENT
If the director is imprisoned, his disqualification will begin when he is convicted, and will continue for another five years or shorter as ordered if disqualified by the Courts after he is released from prison.
Related Article : Composition fine vs Late penalties charges