WEBSITE DISCLOSURE
The Companies Act of 2013 requires that specific information be made available on the company website. Information such the business’s name, registered office address, corporate identity number, contact details (email, phone, fax) and representative’s name in case of complaints or inquiries. Letterhead, business letters, billheads, letter sheets, official publications, and notices must all include the company’s website address. The Companies Act of 2013 does not mandate that Company must have a website, but from April 2011, the Securities and Exchange Board of India (SEBI) has mandated that businesses which has obtained a listed status maintain an updated website. As a result, the following Act and Regulations apply to the required disclosures on the website:
- Companies Act 2013
- SEBI Listing (Obligations and Disclosure Requirements) Regulations 2015
- SEBI (Prohibition of Insider Training) Regulations 2015
Website Disclosures for Private Companies
For private companies, the following must be disclosed on the website along with the mandatory disclosures:
- The Notice of the General Meeting must be placed on the website.
- Details of unpaid dividends, including names and last known addresses of the shareholders, must be disclosed.
- Details of the Corporate Social Responsibility (CSR) must be published on the website.
- Separated Audited accounts with respect to each subsidiary must be published on the website.
- If a director resigns, the same information must be published within 30 days of the director’s resignation.
Website Disclosures for Public Companies
In addition to the mandatory disclosures for the private company, a public company must also publish the following:
- The notice of “Change of objects for which money is raised through prospectus” under Rule 32 of Chapter II – Companies (Incorporation) Rules 2014 must be published on the website.
- A copy of the circular inviting deposits from the public must be on the website of the company.
- Information about the closure of the register of members or debenture holders or other security holders.
- Notice of the postal ballot.
- Results of the postal ballot along with the scrutinizer’s report must be published.
- Details of the establishment of the Vigil Mechanism must also be disclosed on the website.
- Terms of Appointment of Independent Directors must also be published on the website.
Website Disclosures for Listed Companies
A listed company is compulsorily required to have a functional website. The following details must also be mentioned on the website:
- Particulars of the business activities.
- Terms of Appointment of Independent Directors must also be published on the website.
- Particulars of the structure of the various committees of the Board of Directors.
- Code of Conduct of Senior Management and Board of Directors.
- A policy with regards to related party transactions.
- Details of the establishment of the Vigil Mechanism and Whistle Blower Policy.
- Email of Grievance Redressal Mechanism and other relevant information.
- Shareholding Pattern.
- Designated Officials who can handle investor grievances.
- All other information about notices, taxes, agreements, and financial information.
Website Disclosures for Companies That Conduct Online Business
For companies that conduct online business, the following must be disclosed on the website:
- Name of the Company
- Registered Office Address
- Company Identification Number (CIN)
- Telephone Number
- Fax Number, if any
- Email Address
- Contact person in case of any grievances or queries on the landing page of the website
Mandatory Disclosures under the Companies Act 2013
- Website address on all its official publications like business letters, billheads, and notices, etc.
- The notice of “Change of objects for which money is raised through prospectus” under Rule 32 of Chapter II – Companies (Incorporation) Rules, 2014 must be published on the website.
- Details of Annual Return.
- Details of Vigil Mechanism.
- CSR and Company’s policy on director’s appointment and remuneration.
- Terms and Conditions of the Independent Director.
- Closure of register of members or debenture holders.
- Notice of General Meeting.
- Notice of Voting through electronic means.
- Notice of Postal Ballot.
- Special Notice, if any.
- Striking Off of the name of the company details.
- Unpaid Dividend Details.
- Invitation of Deposits.
- Resignation of Director details, if any.
Consequences of Non-compliance of Website Disclosure
As a result, breaking the rules regarding website disclosure has no consequences. However, according to Section 450 of the 2013 Companies Act where there is no specific penalty prescribed under the Act, the penalty for non-compliance by the Company or any officer of the Company who defaults to any of the Act’s provisions is Rs 10,000. This will apply to the nondisclosure default; the business is responsible for publishing all relevant and important information on the website.
