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The companies having their website are required to adhere to certain provisions and compliances about website disclosures. It must be in accordance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Especially the companies having an online business or otherwise are mandatorily required to disclose or publish specific information. Hence, this article will inform you about the list of such disclosures needed to be made on the website of the company.
Let’s try to find out the requisite norms in this article.
These days, nearly every company has an online presence. However, certain website disclosures are still a mystery for various business owners. Also, there are several disclosures which need to be made by different kind of businesses. Hence, the need for website disclosure arises. Now Let’s go ahead and discuss them one by one.
The Companies Act, 2013, Rules or notification issued under the Companies Act, 2013 does not mandate the Company to have its website. However, in the case of Listed Companies, Securities and Exchange Board of India (SEBI) has made it mandatory to maintain a functional and updated site with effect from April 2011.
Moreover, as per Secretarial Standards, the following must be displayed on the website of the company:
The companies which are generally in the business of online services and marketing must disclose or publish:
The Private Company must:
A public company must in addition to the above mention disclosures are required to publish following on their website:
A listed company is mandatorily required to have a functional website. Further, the following details should be mentioned on its website:
The following is the list of general website disclosures which need to be mentioned:
There are no specific penalties provided for non-compliance of the website disclosure requirements. But as per Section 450 (Punishment where no specific penalty or punishment is provided) of the Companies Act, 2013, if the company or any officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees. Moreover, where the contravention is continuing one, a further fine of one thousand rupees for every day will be applicable after the first during which the contravention continues.
Hence, it is highly advisable that the websites of the companies must be updated.
Compliances are the significant scope of work in large corporations. Website disclosures are also one of the primary tools of better Corporate Governance. However, such compliances under the Companies Act, 2013[1] are an ongoing process and not a onetime thing. Moreover,, we provide regular follow up with our client about the company’s compliance calendar. For any more information and consultancy, visit Enterslice or drop us an email at info@enterslice.com.
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