What is an event-based compliance?

Event-Based Compliances are mandatory compliances which are beyond the usual and mandatory, periodically determined compliances made by the organization with ROC and other administrative authorities. These event-based compliances relate to any unscheduled or unforeseen tasks and events that occur as part of business proceedings in an organization.

For a new entity, registering a new business might seem significant. But once a private limited company is registered, as per the provisions of Companies Act, 2013, there are a lot of compliances that need to be obliged, especially event-based compliances.

While compliance automation tools help manage the process as expected, complying with event-based activities need raising tickets on the system.

The need for a DIY functionality

Based on the criticality and the time-sensitive nature of compliances that involve events, our research showed that many clients were in favour of a DIY approach to filing such compliances. Especially since a sizable number of these mandates need to be filed within 15 minutes to 24 hours.

We encouraged our research and tech teams to come out with a suitable feature to address this pressing need of the market. The teams explored nearly three thousand event-based company compliances, required to stay legally comprehensive.

This is a first-of-its-kind functionality to be incorporated in the industry by Quant LegalTech. This feature has been added to its flagship legal tech product Complius.

Now compliance teams can directly try out and activate this new feature. For organizations that use Complius, one needs to just select the Event-Based Trackers tab, follow instructions and sequences and complete the obligation.

Kinds of Event-Based Compliances

In stock, the event-based company compliances are one-time, frequent, or occasional reporting or agreements, which are both required by the concerned laws or are desirable, to remain legal perfect and protected.

ROC Event Based Compliances

• Compliances that are mandatory to comply with, every time and whenever there is an execution of fixed events that would include a change in directors, change in MOA/ AOA, or any activities that need the ROC to be informed.
• Additionally, in case of an annual or period the event, the company must have the proper documents and resolutions to submit with the ROC to inform it about the changes. Any illegal or willful negligence in the disclosure of accurate information about such changes or business events can result in penal action against the company as well as the directors.
• These compliances are one-time, quick, or intermittent reporting, which are either needed by the concerned laws to make it continue as legally protected and secure.

A few examples of Event-Based compliances could be

• Appointment or Resignation of a Director
• Appointment of Managing Director
• Change in the statutory auditors
• Increase of Authorized Capital
• Change in Registered Office address
• Appointment of Auditor

To know more about how Complius can help integrate a strong culture of compliance, give us a call or write to us at sales@quantlegaltech.com

– The author is CEO at Quant LegalTech