Why Corporate Information Is Public: Legal Reasons and How Filesure Helps with Compliance

Why Corporate Information Is Public: Legal Reasons and How Filesure Helps with Compliance

Introduction

At Filesure, we receive a variety of inquiries from users regarding the corporate information displayed on our platform. These typically fall into three categories:


  1. Update My Information: If your corporate details are outdated, we’ve made it easy to update them in real-time. Simply use the “Update Now” button on our site, which fetches the latest data directly from the MCA portal. For detailed instructions on how to use this feature, please visit our How to Use the “Update Now” Button article.

  2. Incorrect Information: If you believe the information displayed is incorrect, it’s possible that the data hasn’t been updated recently. Please use the “Update Now” feature. If the issue persists, it may be due to an error on our end, and we encourage you to submit a support ticket so we can investigate and resolve the issue.

  3. Remove My Information: We understand that some users may want their corporate information removed from our platform. This article will explain why we are legally required to keep this information public and why we cannot fulfill removal requests.


If your inquiry is related to updating or correcting information, please follow the guidance above. For those concerned about the visibility of their corporate information, the rest of this article will clarify the legal foundations for our practices and why transparency is crucial for corporate accountability.

The Compliance Crisis in India

In recent years, the Ministry of Corporate Affairs (MCA) has taken significant steps to enforce compliance among companies operating in India. One of the most notable actions has been the striking off of over 8 lakh companies from the Register of Companies for failing to meet their compliance obligations. This staggering figure highlights a growing issue: nearly 1 in every 3 companies in India is non-compliant with the legal requirements set forth by the Companies Act, 2013.


Non-compliance can have severe consequences, including hefty penalties, legal challenges, and in extreme cases, the dissolution of the company. Unfortunately, many business owners and directors are unaware of their compliance obligations, leading to inadvertent violations that could have been easily avoided. This lack of awareness underscores the importance of transparency and access to reliable, real-time information about a company’s compliance status.


Why Is Corporate Information Public?


The publication of corporate information is not just a matter of convenience; it is a legal requirement mandated by the Companies Act, 2013. This legislation was enacted to ensure that corporate entities in India operate with transparency, allowing stakeholders such as investors, creditors, and the general public to access vital information about companies and their directors.


The Purpose Behind Filesure


At Filesure, we recognized a growing issue in the corporate sector—many companies, particularly small and medium-sized enterprises, struggle to keep up with their compliance obligations. This often results in severe penalties, legal challenges, or even the striking off of companies from the Register of Companies. To address this challenge, we created Filesure with the goal of helping businesses stay compliant and avoid these pitfalls by providing easy access to real-time compliance information.


Our platform is designed not only to display compliance status but also to enhance it by showing which obligations are completed, which are pending, and what actions need to be taken. By making this information easily accessible, Filesure supports companies in maintaining transparency and staying on top of their legal requirements.


  1. Section 128 of the Companies Act, 2013 : This section mandates that companies maintain proper books of accounts and relevant records. These records are subject to public inspection, ensuring transparency in corporate governance. This is crucial for building trust in the corporate sector.
  2. Section 403 of the Companies Act, 2013 : his section allows for public access to documents filed with the Registrar of Companies (RoC). This includes details about directors and other key corporate information, making it accessible to anyone interested in understanding the company’s structure and operations.
  3. Rule 12 of the Companies (Appointment and Qualification of Directors) Rules, 2014 : This rule specifies that certain particulars of directors must be made available for public inspection, reinforcing the transparency mandate established by the Companies Act.


Why We Cannot Remove Information on Request


While we understand that some companies may be uncomfortable with their information being publicly accessible, it is important to note that Filesure is legally obligated to maintain the accuracy and availability of publicly accessible corporate information.



  1. Public Domain Information: The information published on our platform is sourced directly from records that are mandated by law to be public. Once information is placed in the public domain by a government body like the Ministry of Corporate Affairs (MCA), it can be legally reproduced or republished by other entities. As such, removing this information would conflict with the legal requirements for transparency and public access.
  2. The Puttaswamy Judgment (2017): The Supreme Court of India recognized the right to privacy as a fundamental right but also held that this right is not absolute. It can be restricted for legitimate state aims, including ensuring transparency in public affairs. The publication of corporate information falls under this legitimate aim, which is why we are required to keep this information publicly accessible.
  3. R. Rajagopal vs. State of Tamil Nadu (1994) and ICICI Bank Ltd. vs. Shanti Devi Sharma (2008): These cases further establish that the right to privacy does not extend to information already in the public domain. Therefore, removing such information on request would be contrary to legal precedents that support the public’s right to access corporate information.


Public Domain Information and Privacy


When corporate information is made available in the public domain by a government body like the Ministry of Corporate Affairs (MCA), it can be legally reproduced or republished by other entities. This is because once information enters the public domain, it is no longer protected by privacy laws to the same extent as private information.


The Role of Filesure: Bridging the Compliance Gap


At Filesure, our mission is to help companies navigate the complex landscape of corporate compliance. We recognize the challenges that businesses face in keeping up with their legal obligations, and our platform is designed to make compliance management as straightforward as possible.


Real-Time Compliance Tracking


One of the key features of Filesure is our comprehensive compliance table, which integrates real-time data directly from the MCA portal. This table provides a clear overview of a company’s compliance status, showing which requirements have been fulfilled, which are pending, and which need immediate attention. We even provide details on fees paid, due dates, and any penalties incurred.


Proactive Compliance Management


Our platform goes beyond simply displaying compliance data. We offer proactive solutions by highlighting upcoming deadlines and alerting users to actions that need to be taken to avoid non-compliance. This approach helps businesses stay ahead of their obligations, reducing the risk of penalties and ensuring they remain in good standing with regulatory authorities.


Conclusion: Empowering Companies Through Compliance


At Filesure, our goal is to empower businesses by providing them with the tools and information they need to stay compliant with the law. We understand that the consequences of non-compliance can be severe, and we are here to help companies avoid those pitfalls by ensuring they have access to the most up-to-date compliance information.


However, if you still have concerns about the publication of your company’s information on our platform, we recommend consulting with a legal professional to explore your options. Our practices are fully compliant with Indian law, but we understand that every situation is unique.

Disclaimer

The information provided in this article reflects Filesure’s understanding of the legal requirements surrounding corporate compliance and the publication of publicly accessible information. This article is not intended as legal advice. For specific legal concerns, please consult a qualified lawyer.


    • Related Articles

    • Why Investors Prefer Companies That File Regularly with MCA ?

      Companies That File Regularly with MCA have shown that they are more trusted & investment ready in today's competitive business world. It helps investors who now act with more care & rely on clear financial records & simple compliance to make funding ...
    • What is Company Search? Meaning and Importance for Entrepreneurs ?

      The Company Search has become one of the most essential tools for modern entrepreneurs who want to make informed decisions, verify partners & ensure business safety. It is a time where scams, fake companies & non compliant businesses keep appearing ...
    • What Are Public Documents in MCA Portal?

      The Public Documents in MCA Portal play a crucial role in ensuring transparency, accountability & trust in India's corporate system. We access public documents on the MCA portal to verify a company legal status, financial health, ownership structure ...
    • When Should a Company Convert From Private to Public Limited?

      Conversion From Private to Public Limited Company has become an important topic for growing companies that want more funds & stronger presence in the market. The move from a private structure to a public structure helps businesses reach a wider group ...
    • Why Does Every Business Need a Compliance Management Tool?

      The world of business grows fast & complex. The need for simple tools becomes essential for smooth operations.The role of a compliance management tool becomes very important for every business. Today, in this article we will look at the Compliance ...