Penalties applicable to Pvt Companies and its directors under Companies Act, 2013

J V R Punnarao says:

In Supporting srihari, providing further more clarification,

1.If a company is unable to spend the contribution amount in a year it should specify the reasons for not spending that amount in its Board of Director’s annual report.
2.There is no penal provision regarding non-compliance of the said provisions in means of spending or in reporting part. However, there are clear penal consequences if a company fails to even set up the CSR committee or fails to create a policy etc.
If a company fails to spend the money, it only has to report this along with reasons. Section 134(8) of the Act provides for such penal provision stating in case the company does not disclose the reasons in the Board‘s report, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

3. The new law does not specify punishment for failure to spend CSR expenditure. However such cases are covered under section 450 read with section 451 which provides for residual provisions for the same. Fine under section 450 may extend to ten thousand rupees, and where the contravention is continuing one, a further fine to one thousand rupees for every day after the first during which contravention continues is imposed.

“Excellence should be a Habit”, but not in the case of offences or defaults in the 2013 Act. “Default should not be a habit” says the new law. As per Section 451 of the 2013, the defaulter is punished either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence.

December 22, 2015 at 5:36 pm

5 Comments

SHUBHAM GUPTA says:

If a person uses private limited company without registration under roc
What is the penalty for the same


November 24, 2020 at 2:44 pm
Amar says:

We acquired a private company that was no operational and the owners failed to maintain a resident director and only had one shareholder for some time. We have since corrected all of the issues. What is the penalty for such acts? Again the entity did not operate at all – entirely dormant during the infractions.


July 25, 2020 at 2:39 am
J V R Punnarao says:

In Supporting srihari, providing further more clarification,

1.If a company is unable to spend the contribution amount in a year it should specify the reasons for not spending that amount in its Board of Director’s annual report.
2.There is no penal provision regarding non-compliance of the said provisions in means of spending or in reporting part. However, there are clear penal consequences if a company fails to even set up the CSR committee or fails to create a policy etc.
If a company fails to spend the money, it only has to report this along with reasons. Section 134(8) of the Act provides for such penal provision stating in case the company does not disclose the reasons in the Board‘s report, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

3. The new law does not specify punishment for failure to spend CSR expenditure. However such cases are covered under section 450 read with section 451 which provides for residual provisions for the same. Fine under section 450 may extend to ten thousand rupees, and where the contravention is continuing one, a further fine to one thousand rupees for every day after the first during which contravention continues is imposed.

“Excellence should be a Habit”, but not in the case of offences or defaults in the 2013 Act. “Default should not be a habit” says the new law. As per Section 451 of the 2013, the defaulter is punished either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence.


December 22, 2015 at 5:36 pm
Varsha says:

Good and handy summary of important section. The section relating to CRS is provided in the chart. My qurey is which section of Company’s Act specifies the actual penalty amount for violation of CSR provision.


December 21, 2015 at 2:33 pm

Sec- tion	Section	Applica-bility	Penalty	For Company	For Director
No	Name	for Private Company	Heading	Penalty	Penalty	Imprison- ment
Sec 8	Formation of Companies with Charitable Objects	Yes	Default in complying with any of the requirements laid down in this section Concerning formation of Companies with charitable objects	Rs. 10 Lakhs – Rs.1 Crore	Rs.25,000 – Rs.25 Lakhs	Maximum 3 years
Sec 8	Formation of Companies with Charitable Objects	Yes	Affairs of a company registered under Sec 8 were conducted fraudulently	Any person found to be guilty of fraud – Imprisonment 6 Months(Min) – 10 Years(Max), Fine – 1 time(Min) to 3 times(Max) the amount involve in the fraud
Sec 10	Effect of Memorandum & Articles	Yes	Defaulting in complying with any requirement under this section	Rs.10 Lakhs – Rs.1 Crore
Sec 12	Registered office of the company	Yes	Non Affixing of Name, CIN, Fax, email , address etc of the registered office on all correspondances	Rs.1,000/- per day not exceeding Rs. 1 Lakh	Rs.1,000/- per day not exceeding Rs. 1 Lakh
Sec 15	Alteration of memorandum & articles to be noted in every copy	Yes	Default in complying the provisions of this section	Rs.1,000/- for every copy of memorandum & articles	Rs.1,000/- for every copy of memorandum & articles
Sec 16	Rectification of name of company	Yes	Default in complying the provisions of this section	Rs.1,000/- for every day of default	Rs.5,000 – Rs.1 Lakh
Sec 17	Copies of memorandum, articles etc to be given to members	Yes	Default in complying the provisions of this section	Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less	Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less
Sec 19	subsidiary company not to hold shares in its holding company	Yes	Default in complying the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 20	Service of documents	Yes	Non Communication of Mode of service of Documents	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 21	Authentication of documents, proceeding & Contracts	Yes	Non signing by any KMP or an officer of company duly authorised by the board	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 42	Offer or invitation for subscription of securities on private placement	Yes	a. Private company alloting shares to outsiders before allotment to existing shareholders and by not passing special resolution and not complying with the provisions of private placement ( sec 42)	Amount of Offer or 2 crores whichever is higher.	Amount of Offer or 2 crores whichever is higher.
Sec 46	Certificate of shares	Yes	Issue of a duplicate share certificate with an intention to default	5 times(Min) – 10 times(max) the value of the shares involved in the issue of duplicate certificate or Rs.10 Crores which ever is higher	1 time(Min) – 3 times(max) the amount involve in the fraud	6 Months – 10 Years
Sec 46	Certificate of shares	Yes	Defaulting in complying with any requirement under this section	Rs.10,000/- + Rs.1,000 for every day(It it is a continuing one) after the first during which the contravention continues	Rs.10,000/- + Rs.1,000 for every day(It it is a continuing one) after the first during which the contravention continues
Sec 53	Prohibition on issue of shares at discount	Yes	Defaulting in complying with any requirement under this section	Rs. 1 Lakh – Rs. 5 Lakhs	Rs. 1 Lakh – Rs. 5 Lakhs	Maximum 6 months
Sec 56	Transfer & transmission of securities	Yes	Default in complying the provisions of this section	Rs.25,000 – Rs.5 Lakhs	Rs.10,000 – Rs.1 Lakh
Sec 57	Punishment for personation of shareholder	Yes	Defaulting in complying with any requirement under this section		Rs. 1 Lakh – Rs.5 Lakhs	1 Year (Min) – 3 years(Max)
Sec 58(6)	Refusal of registration and appeal against refusal	Yes	Defaulting in complying with any requirement under this section		Rs. 1 Lakh – Rs.5 Lakhs	1 Year (Min) – 3 years(Max)
Sec 59(5)	Rectification of register of members	Yes	Defaulting in complying with any requirement under this section	Rs. 1 Lakh – Rs. 5 Lakhs	Rs. 1 Lakh – Rs.3 Lakhs	Maximum 1 year
Sec 60	Publication of authorised, subscribed & paid up capital	Yes	No indicating its authorised capital in any notice/ ad/letter in the same font and style of subscribed capital and paid up capital.	Rs.10,000/-	Rs.5,000/-
Sec 64	Notice to be given to registrar for alteration of share capital	Yes	Default in complying the provisions of this section	Rs.1,000/day or Rs.5 Lakhs whichever is less	Rs.1,000/day or Rs.5 Lakhs whichever is less
Sec 67	Restriction on purchase by company or giving of loans by it for purchase of its shares	Yes	Default in complying the provisions of this section	Rs.1 Lakh – Rs.25 Lakhs	Rs.1 Lakh – Rs.25 Lakhs	3 Years
Sec 68(11)	Power of Company to purchase its own securities	Yes	Defaulting in complying with any requirement under this section	Rs. 1 Lakh – Rs. 3 Lakhs	Rs. 1 Lakh – Rs. 3 Lakhs	Maximum 3 years
Sec 71(11)	Debentures	Yes	Defaulting in complying with any requirement under this section		Rs. 2 Lakh – Rs. 5 Lakhs	Maximum 3 years
Sec 73	Prohibition on acceptance of deposits from public	Yes	Default in complaince of acceptance of money from Customers, Directors, members etc	Rs.5,000/- plus Rs.500/- per day till contravention continues	Rs.5,000/- plus Rs.500/- per day till contravention continues
Sec 77	Duty to register charges	Yes	Not registering the particulars of charge within 30 days to ROC	Rs.1 lakh to Rs. 10 lakhs	Rs.25,000 – Rs.1 Lakh	6 months
Sec 85	Company’s register of charges	Yes	Non maintenance of Register of Charges in Form CGH7 at its registered office	Rs.1 lakh to Rs. 10 lakhs	Rs.25,000 – Rs.1 Lakh	6 months
Sec 88	Register of members	Yes	Non maintenance of Register of Members in Form MGT 1	Rs.50,000 – Rs.3 Lakhs, plus Rs.1,000/- per day till the contravention continues	Rs.50,000 – Rs.3 Lakhs, plus Rs.1,000/- per day till the contravention continues
Sec 89	Declaration in respect of beneficial interest in any share	Yes	Not stating the particulars of Form No.MGT 4 & MGT 5 in the register of members and non filing of MGT 6 with ROC within 30 days	Rs.50,000/- plus Rs.1,000/- per day till contravention continues	Rs.50,000/- plus Rs.1,000/- per day till contravention continues
Sec 92(5)	Annual return	Yes	Non filing of Annual Return to ROC in Form MGT 7 within 60 days and non signing by the director etc	Rs.50,000 – Rs.5 Lakhs	Rs.50,000 – Rs.5 Lakhs	Maximum 6 months
Sec 94	Place of Keeping and inspection of registers, returns etc	Yes	Default in complying the provisions of this section	Rs.1000/- per ever day subject to maximum of Rs.1 Lakh	Rs.1000/- per ever day subject to maximum of Rs.1 Lakh
Sec 96	AGM	Yes	Not holding AGM within 15 mnths from last AGM or not holding within 6 months from the end of financial year	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 100	Calling of EGM	Yes	Default in complying the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 101	Notice of Meeting	Yes	21 days clear notice was not given while calling for a general meeting	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 102	Statement to be annexed to notice	Yes	Defaulting in complying with any requirement under this section		For every Promoter, Director, manager or KMP – Rs.50,000 or 5 times the benfit accruing to them or their relatives which ever is more
Sec 105	Proxy	Yes	Default in complying the provisions of this section		Upto Rs.1 Lakh
Sec 111	Circulation of members resolution	Yes	Default in complying the provisions of this section	Rs. 25,000/-	Rs. 25,000/-
Sec 117	Filing of resolutions with ROC	Yes	Failure to file Copy of resolution with copy of agreement/ explanatory statement in Form No.MGT-14 with ROC within 30 days	Rs. 5 Lakhs – Rs. 25 Lakhs	Rs. 1 Lakh – Rs. 5 Lakhs
Sec 118(11)	Minutes of proceedings of general meeting, meeting of Board and other meeting & resolution passed by postal ballot	Yes	Default in complying with the provisions of this section	Rs. 25,000	Rs. 5,000
Sec 118(12)	Minutes of proceedings of general meeting, meeting of Board of Directors and other meeting and resolutions passed by postal ballot.	Yes	Any person found guilty of tampering with the minutes- Maximum imprisonment for 2 years and Fine- Not less than Rs. 25,000 but which may extend to Rs. 1 lakh
Sec 119	Inspection of Minute book of General Meeting	Yes	Default in complying with the provisions of this section	Rs. 25,000	Rs.5,000 for each refusal
Sec 123	Declaration of dividend	Yes	Default in complying the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 127	Punishment for failure to distribute dividends	Yes	Non posting of warrant within 30 days in case of declaration of dividend – every director of the company if he is knowingly a party the default	Simple interest @ 18% P.a for the period of default	Rs.1,000 for every day during which such default continues	2 Years
Sec 128(6)	Books of account, etc., to be kept by Company	Yes	Defaulting in complying with any requirement under this section		Rs.50,000 – Rs.5 Lakhs	Maximum 1 Year
Sec 129(7)	Financial statement	Yes	Defaulting in complying with any requirement under this section		Rs.50,000 – Rs.5 Lakhs	Maximum 1 Year
Sec 134	Financial statement, Board’s report, etc	Yes	Default in complying the provisions of this section	Rs. 50,000 – Rs.25 Lakhs	Rs.50,000 – Rs.5 Lakhs	Maximum 3 Years
Sec 135	CSR Responsibility	Yes	Default in complying with the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 137(3)	Copy of financial statement to be filed with Registrar	Yes	Non-filing of copy of financial statements in Form AOC-4 within 30 days	Rs.1,000 for every day in default but not more than 10 lakhs	Rs. 1 Lakh – Rs.5 Lakhs	Maximum 6 Months
Sec 140	Removal, resignation of auditor & giving special notice	Yes	Removal of auditor without passing special resolution or without obtaining approval from Central Govt or Non-filing of Form ADT-2 with government while removal	Rs.25,000 – Rs.5 Lakhs	Rs.10,000 – Rs.1 lakh	1 Year
Sec 141	Eligibility, qualifications & disqualifications of auditors	Yes	Default in complying the provisions of this section	Rs.25,000 – Rs.5 Lakhs	Rs.10,000 – Rs.1 lakh	1 Year
Sec 149	Company to have Board of directors	Yes	Default in complying the provisions of this section	Rs. 50,000 – Rs.5 Lakhs	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 152	Appointment of directors	Yes	Non submission of DIR-2 & declaration that he is not disqualified to be as a director & Non-filing of DIR-12 with ROC within 30 days of appointment	Rs. 50,000 – Rs.5 Lakhs	Rs.50,000 + Rs.500/- per day from the first during which the contravention continues	Maximum 6 Months
Sec 155	Prohibition to obtain more than one DIN	Yes	Defaulting in complying with any requirement under this section		Rs.50,000 + Rs.500/day after the first during with the contravention continues	Maximum 6 months
Sec 156	Director to intimate DIN	Yes	Defaulting in complying with any requirement under this section		Rs.50,000 + Rs.500/day after the first during with the contravention continues	Maximum 6 months
Sec 157	Company to inform DIN to registrar	Yes	Failure to furnish DIN under subsection (1), before the expiry of the period specified under section 403 with additional fee	Rs.25,000 – Rs.1 Lakh	Rs.25,000 – Rs.1 Lakh
Sec 158	Obligation to indicate DIN	Yes	1)Non furnishing of DIN of any of the directors with ROC. 2) Non filing of DIR-6 (when any change in the particulars of director) along with DIR-7 within a period of 30 days with central Government	Rs. 50,000 – Rs.5 Lakhs	Rs. 50,000 – Rs.5 Lakhs
Sec 162	Appointment of director to be voted individually	Yes	Default in complying with any requirement under this section	Rs.50,000 – Rs. 5 Lakhs	Rs.50,000 – Rs. 5 Lakhs
Sec 165	Number of Directorships	Yes	Defaulting in complying with any requirement under this section	Rs.5,000 – Rs.25,000 for every day during which the contravention continues	Rs.5,000 – Rs.25,000 for every day during which the contravention continues
Sec 166	Duties of directors	Yes	Defaulting in complying with any requirement under this section	Rs.1 Lakh – Rs.5 Lakh
Sec 167	Vacation of office of director	Yes	Any person who after knowing that the office of director held by him has become vacant on account of any disqualification specified in subsection(1), still acts as a director	Rs.5,000/- to Rs.25,000 per day during which the contravention continues	Rs. 1 Lakh – Rs. 5 Lakhs	Maximum 1 Year
Sec 168	Resignation of director	Yes	1) Non submission of notice to company by the director while resigning. 2)No intimation to ROC by the company about the fact of such resignation in report of directors. 3) Not forwaded a copy of resolution along with detailed reasons to the ROC within 30 days in FORM DIR-11	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 170	Register of Directors and KMP and their shareholding	Yes	Default in complying with the provisions of this section	Rs.50,000 – Rs. 5 Lakhs	Rs.50,000 – Rs. 5 Lakhs
Sec 173	Meetings of board	Yes	Failure by the officer of the company to give notice under this section		Rs. 25,000
Sec 174	Quorums for meeting of board	Yes	Default in complying with the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 179	Powers of board	Yes	Default in complying with the provisions of this section	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 180	Restrictions on powers of board	Yes	Non passing of special resolution in the case of 1) Sell, lease of any undertaking of the company. 2) Borrow of money, where the (money to be borrowed+ Already borrowed money) > (Paid up capital+Free reserves)	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 182(4)	Prohibitions and restrictions regarding political contributions	Yes	Defaulting in complying with any requirement under this section	5 times of the amount of contribution in contravention	5 times of the amount of contribution in contravention	Maximum 6 Months
Sec 184(4)	Disclosure of interest by director	Yes	Defaulting in complying with any requirement under this section		Rs.50,000 – Rs.1 Lakh	Minimum 1 year
Sec 185(2)	Loan to directors	Yes	When a company has advanced an loan directly or indirectly to any of its directors or to such other person in whom the director is interested.	Rs. 5 Lakhs – Rs.25 Lakhs	Rs. 5 Lakhs – Rs.25 Lakhs	Maximum 6 months
Sec 186(13)	Loan and investment by Company	Yes	Defaulting in complying with any requirement under this section	Rs. 25,000/- – Rs.5 Lakhs	Rs. 25,000/- – Rs.1 Lakh	Maximum 2 years
Sec 187(4)	Investments of Company to be held in its own name	Yes	Defaulting in complying with any requirement under this section	Rs. 25,000/- – Rs.25 Lakhs	Rs. 25,000/- – Rs.1 Lakh	Maximum 6 Months
Sec 188(5)	Related party transactions	Yes	Defaulting in complying with any requirement under this section		In case of unlisted Company, Rs.25,000 – Rs.5 Lakhs
Sec 189	Register of Contracts/Arrangements	Yes	Defaulting in complying with any requirement under this section		Rs. 25,000
Sec 190	Contract of employment with managing or whole-time directors	Yes	Default in complying with the provisions of this section	Rs. 25,000	Rs.5,000 for each default
Sec 191	Payment to director for loss of office in connection with transfer of undertaking, property or shares	Yes	Defaulting in complying with any requirement under this section	Rs.10,000 + Rs.1,000/day after the first during which the contravention continues	Rs.25,000 – Rs.1 Lakh
Sec 194	Prohibition on forward dealings in securities of company by director or KMP	Yes	Defaulting in complying with any requirement under this section by adirector or KMP		Rs.1 Lakh – Rs.5 Lakhs	May extend to 2 years
Sec 204	Secretarial audit for bigger companies	Yes for certain class of companies	Default in complying with the provisions of this section	Rs.1 Lakh – Rs.5 Lakhs	Rs.1 Lakh – Rs.5 Lakhs
Sec 206	Power to call for information, inspect books and conduct enquires	Yes	Default in complying with the provisions of this section	Rs.1 Lakh + Rs.500/day it the default continues	Rs.1 Lakh + Rs.500/day it the default continues
Sec 207	Conduct of inspection and inquiry	Yes	Defaulting in complying with any requirement under this section		Rs.25,000/- – Rs.1 Lakh	Maximum 1 year
Sec 405	Power of Central Government to direct companies to furnish information or statistics	Yes	Default in complying with the provisions of this section	Rs. 25,000	Rs.25,000 – Rs.3 Lakh	6 months
Sec 447	Punishment for Fraud	Yes	Defaulting in complying with any requirement under this section	Any person who is found to be guilty of fraud- Maximum imprisonment of 6 months may extend to 10 years & also liable to fine which may extent to 3 times the amount involved.
Sec 450	Punishment where no specific penalty or punishment is provided	Yes	Where no specific penalty/punishment is provided during contravention	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues	Rs.10,000/- plus Rs.1,000/- per day till the contravention continues
Sec 451	Punishment in case of repeated default.	Yes	Default in complying with the provisions of this section	Twice the amount of fine already impounded	Twice the amount of fine already impounded	Same imprisonment already impounded
Sec 452	Punishment for wrongful witholding of property	Yes	Default in complying with the provisions of this section		Rs.1 Lakh – Rs.5 Lakhs
Sec 453	Punishment for improper use of “Limited” or “private Limited”	Yes	Default in complying with the provisions of this section	Rs.500/day – Rs.2,000/day for every continuing day of default	Rs.500/day – Rs.2,000/day for every continuing day of default
Sec 454	Adjudication of penalties	Yes	Default in complying with the provisions of this section	Rs.25,000 – Rs.5 Lakhs	Rs.25,000 – Rs.1 Lakhs	6 Months
Chapter IV	Registration of charges	Yes	Defaulting in complying with any requirement under this section	Rs. 1 Lakh – Rs. 10 Lakhs	Rs. 25,000/- – Rs.1 Lakh	Maximum 6 months

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Penalties applicable to Pvt Companies and its directors under Companies Act, 2013

Sec-

tion

Section

Applica-bility

Penalty

For

Company

For

Director

No

Name

for Private Company

Heading

Penalty

Penalty

Imprison-

ment

Sec 8

Formation of Companies with Charitable Objects

Yes

Default in complying with any of the requirements laid down in this section Concerning formation of Companies with charitable objects

Rs. 10 Lakhs – Rs.1 Crore

Rs.25,000 – Rs.25 Lakhs

Maximum 3 years

Affairs of a company registered under Sec 8 were conducted fraudulently

Any person found to be guilty of fraud – Imprisonment 6 Months(Min) – 10 Years(Max), Fine – 1 time(Min) to 3 times(Max) the amount involve in the fraud

Sec 10

Effect of Memorandum & Articles

Yes

Defaulting in complying with any requirement under this section

Rs.10 Lakhs – Rs.1 Crore

Sec 12

Registered office of the company

Yes

Non Affixing of Name, CIN, Fax, email , address etc of the registered office on all correspondances

Rs.1,000/- per day not exceeding Rs. 1 Lakh

Rs.1,000/- per day not exceeding Rs. 1 Lakh

Sec 15

Alteration of memorandum & articles to be noted in every copy

Yes

Default in complying the provisions of this section

Rs.1,000/- for every copy of memorandum & articles

Rs.1,000/- for every copy of memorandum & articles

Sec 16

Rectification of name of company

Yes

Default in complying the provisions of this section

Rs.1,000/- for every day of default

Rs.5,000 – Rs.1 Lakh

Sec 17

Copies of memorandum, articles etc to be given to members

Yes

Default in complying the provisions of this section

Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less

Rs.1,000/- for every day of default or Rs. 1 Lakh whichever is less

Sec 19

subsidiary company not to hold shares in its holding company

Yes

Default in complying the provisions of this section

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Sec 20

Service of documents

Yes

Non Communication of Mode of service of Documents

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Sec 21

Authentication of documents, proceeding & Contracts

Yes

Non signing by any KMP or an officer of company duly authorised by the board

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Rs.10,000/- plus Rs.1,000/- per day till the contravention continues

Sec 42

Offer or invitation for subscription of securities on private placement

Yes

a. Private company alloting shares to outsiders before allotment to existing shareholders and by not passing special resolution and not complying with the provisions of private placement ( sec 42)

Amount of Offer or 2 crores whichever is higher.

Amount of Offer or 2 crores whichever is higher.