ROC Coimbatore has imposed a ₹3.5 lakh penalty for failing to appoint an Internal Auditor under Section 138, highlighting the criticality of compliance with internal governance standards.
Penalty for Non-Appointment of Internal Auditor
ROC Coimbatore has levied a ₹3.5 lakh penalty on a company and its officers for failing to appoint an Internal Auditor under Section 138 of the Companies Act. This case underscores the essential nature of compliance with internal governance regulations.
The Internal Auditor plays a pivotal role in ensuring transparency and accountability in a company's operations. Non-compliance with this requirement can have serious implications for corporate governance.
Legal practitioners must advise their clients on the importance of adhering to internal audit requirements to avoid penalties and enhance organizational effectiveness.
