Brief of 17 Sections under the Companies (Amendments) Act, 2019
*Note- Fine is imposed when any Compounding application/ Petition filed with NCLT or any Court, but the Penalty imposed when Company made noncompliance and adjudicating authority directly can imposed penalty on them.
|1||53(3)||Prohibition of Issue of shares at a discount|
|2||64(2)||Notice to be given to Registrar for alteration of share capital|
|4||102(5)||Statement to be annexed to Notice|
|6||117(2)||Resolutions and Agreements to be filed|
|7||121(3)||Report on annual general meeting|
|8||137(3)||Copy of financial statement to be filed with Registrar|
|9||140(3)||Removal, resignation of auditor and giving of special notice|
|10||157(2)||Company to inform Director Identification Number to Registrar|
|11||159||Punishment for Contravention in respect of DIN|
|12||165(6)||Number of Directorships|
|13||191(5)||Payment to Director for Loss of Office|
|14||197(15)||Overall maximum managerial remuneration and managerial remuneration in case of absence or
inadequacy of profits
|15||203(5)||Appointment of Key Managerial Personnel|
|16||238(3)||Registration of the offer of scheme involving transfer of shares|
|17||446B||Lesser Penalties for OPC or Small Companies|
Let’s take an Example!
Section 53(3)-Prohibition of issue of shares at Discount:
A Company shall not issue shares at Discount. If it contravenes the provisions of this Section 53.
|Before Amendment i.e Fine||After Amendment i.e Penalties|
|Company||Company shall be punishable with fine not less than 1 Lakh but which may extend to 5 Lakh||Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with
interest at the rate of twelve per cent. per
annum from the date of issue of such shares to the persons to whom such shares have been issued.”.
|Officer in Default||Punishable with imprisonment for max term of 6 Months or with fine not less than 1 Lakh but which may extend to 5 Lakh.|
*Note: Therefore, before Amendment default can be make good by petition in NCLT by filing compounding application Suo Moto or after receipt of notice form ROC/ MCA. And, After Amendment ROC may start levying penalty by issuing Show Cause Notice without any petition to NCLT or any other authorities.