Director Penalty Rule 26

[Adarsh Gupta]

Dear Sir's,

Whether a separate OIO needs to be served on the Director for Rule 26 Penalty apart from the company? Let's say a Director has left the organization, however penalty has been imposed on him vide a common OIO..How will a Director file an appeal against the said order which was served on to the company and he was not aware of the same.

Regards,

Adarsh Gupta

AI Summary

Directors Must Receive Separate Orders Under Rule 26 for Penalties; Appeals Can Be Heard Together A query was raised regarding whether a separate Order-in-Original (OIO) should be served on a director for a penalty under Rule 26, apart from the company. It was clarified that while a common OIO can impose penalties on both the company and its director, the director should receive a separate copy. If a director has left the company, they remain responsible for offenses committed during their tenure. The company must ensure the director receives their copy. The director must file their appeal separately, and both appeals can be heard together. Additionally, a Show Cause Notice (SCN) should be issued separately to the director before imposing a personal penalty. If the director was not served the OIO, they cannot claim it was not served; instead, they should challenge the penalty on its merits. The discussion also highlighted the importance of addressing the time-bar issue in appeals and the need for expert legal representation.