Sponsored

FAQs about Compounding of Offences- Companies Act, 2013

Sponsored

Sanchit Kumar

Q. Relevant provision of the companies act?

As per companies act, 1956 sec 621A was applicable for compounding of offences and as per companies act, 2013 section 441 is applicable.

Q. Which offences can be compounded?

Nothwithstanding anything contained in the Code Of Criminal Procedure Code,1973

Only offences punishable under this act (i.e. companies act) WITH FINE ONLY can be compounded.
Offences punishable with Fine or imprisonment Or Fine or imprisonment or both Compoundable with permission of Court

Q. With whom the application for compounding is to be made?

If the amount of fine levied is upto (i.e. <=) Rs.5 lakh, then application to be filed to

Regional Director

Officer Authorized by CG

Every application to be filed to REGISTRAR who shall forward the same to:

Tribunal

Regional director

Officer authorized by CG

Q. Which form is to be filed to ROC along with the attachments and fees required to be paid?

Form GNL-1 has to be filed with ROC along with the following attachments:

*here detailed application means and includes the following:

Fees to be submitted:

Company having share capital	Amount (Rs.)
Less than 100,000	200
100,000 to 499,999	300
500,000 to 24,99,999	400
25,00,000 to 99,99,999	500
100,00,000 or more	600
Company having no share capital	Rs. 200 per document

Q. What after compounding?

After compounding of offence, intimation to ROC has to be made within 7 days in form no GNL-2.

SPECIAL POINTS :

If compounding of offence has been made, no prosecution for the same offence can be made by any person(i.e. registrar/ shareholder/any person authorized by CG)
If compounding of offence is made after the institution of any prosecution, such compounding shall be brought by the registrar in writing to the notice of the court in which the prosecution is pending and on such notice, the company or its officer in relation to whom the offence is so compounded shall be discharged.
No compounding if the same offence is committed within 3yrs by company or officer in default. (prohibition is for the 2^nd offence committed within 3yrs)
If the offence is committed after 3yrs by the same company or officer in default it can be compounded.
If default is made in filling any account/return/document the Tribunal/regional director /any officer authorized by CG as the case may be , if he thinks fit to do so, on payment of fee or/and additional fee may direct to file or register within such time as may be specified in the order and if such account/return/document is not filed within such specified time, any officer or other employee of the company shall be punishable with imprisonment for upto 6 months or with fine upto 1 lakh rupees or both