When the AOC-4 Form and MGT-7 Form are not filed for any financial year, the company along with its members can be charged with relevant penalties. Non-Filling of the same for two consecutive years shall be assumed that the company has closed its business by the Registrar of Companies. And, thus the Registrar will send a notice to the company and its directors relating the same and with given time and opportunity, the company can be removed from the list of companies.
When the forms are not filed for three consecutive years it can result in disqualification of all the Directors holding the office. The official recognition of the directors which is The Directors Identification Number (DIN) shall become invalid and inactive. Thus, the directors can neither hold the office of director in any company nor can incorporate any company for a period of five years.