prpri Sections in Companies Act 2013 of Offenses which are Punishable Sections in Companies Act 2013 of Offenses which are Punishable

Sections in Companies Act 2013 which are Punishable in nature (Both Compoundable and Non-Compoundable)

Offenses under Companies Act 2013 are categorized under following categories:-

1. Offenses which are Liable to Penalty (They are Adjudicated by ROC’s themselves in an IAM mechanism) {https://taxguru.in/company-law/sections-companies-act-penal-provisions-subjected-in-house-adjudication-framework.html}

2. Offenses which are Punishable in Nature and can be Compoundable offense or Non-compoundable offense.

Offenses under Companies Act 2013

Here is the gist of sections which are Compoundable in Nature (BY RD or By NCLT) and Sections which are Non compoundable in Nature under Companies Act 2013

Statement showing the delegation of powers of sanctioning of prosecution by the Central Government to Regional Directors in respect of the following sections in Companies Act 2013, Which are Compoundable and maximum fine which can be imposed is Rs 25,00,000.

Chapter No. Chapter name Section Violated Section under which the prosecution is filed Nature of Punishment
III Part 1 Public offer 26 26(9) Only Fine
IV Share capital and debentures 68 and Regulation of SEBI for 68(2)(f) 68(11) Only Fine
VII Management and Administration 96,97 and 98 99 Only Fine
IX Accounts of Companies 128 128(6) Only Fine
129 129(7) Imprisonment or Fine or both
X Audit and Auditors 139-146 147(1) Only Fine
139, 144 and 145 147(2) Only Fine
148 148(8) Only Fine
XI Appointment and qualification of Directors 166 166(7) Only Fine
167(1) 167(2) Only Fine
XII Meetings of Board and its Powers 185 185(4) Imprisonment or Fine or both
XIV Inspection, Inquiry, and Investigation 206 206(7) Only Fine
221(1) 221(2) Imprisonment or Fine or both
222(1) 222(2) Imprisonment or Fine or both
XVI Prevention of oppression and mismanagement 242(5) 242(8) Only Fine
243(1)(b) or 243(1A) 243(2) Only Fine
XVIII Removal of Names of Companies from the register of Companies 249(1) 249(2) Only Fine
XX Winding-up 344(1) 344(2) Only Fine
347(3) 347(4) Only Fine
XXII Companies Incorporated Outside India Chapter XXII 392 Only Fine
XXIX Miscellaneous Committing second or subsequent offense within 3 years 451 Only Fine
452(1) 452(1) Only Fine
Improper use of words Limited and private Limited 453 Only Fine
454(3) or 454(7) 454(8) Imprisonment or Fine or both
464(1) 464(3) Only Fine
469(1) 469(3) Only Fine

# In Consultation with SEBI, in case of listed companies.

# wherever there exists an element of Fraud and has been reported  in any sections mentioned above- RD, shall not Compound and it must be mandatorily reported in Part A of 3I’s Report.

Statement showing the delegation of powers of sanctioning of prosecution by the Central Government to Tribunal in respect of the following sections in Companies Act 2013, Which are Compoundable and maximum fine which can be imposed is more than Rs 25,00,000.

Chapter No. Chapter Name Sections violated Section under which the prosecution is filed
II Incorporation of company and matters incidental thereto 8 8(11)
III Part 1 Public offer 40 40(5)
IV Shares Capital and Debentures Issue of duplicate Certificate to defraud 46(5)
V Acceptance of Deposits by Companies 74(1) or 74(2) 74(3)
XXIX Miscellaneous Fraud Involving amount less than 10 Lakh or one percent of Turnover. 447

Statement showing the offenses which are Non-Compoundable and are mandatorily punishable with Imprisonment.

Chapter No. Chapter name Sections Violated Section under which prosecution is filed
IV Share Capital and Debentures Personation as a shareholder 57
58 58(6)
67 67(5)
V Acceptance of deposits 73 or 76 76A
VII Management and Administration Tampering the Minutes 118(12)
VIII Declaration and Payment of Dividend Dividend declared but not paid or Posted within 30 days 127
X Audit and Auditors 139,143,144 and 145 147(2)

Proviso

XII Meeting of Board and its Powers 182 182(4)
186 186(13)
XIV Inspection, Inquiry, and Investigation 207 207(4)
217 217(6)
217(1), 217(2), 217(4), 217(7) 217(8)
XI Prevention of Oppression and Management 245 245(7)
XVII Registered valuers Contravenes 247 to defraud the Company 247(3) Proviso
XX Winding up 336(1) 336(1)
336(1)(d)(viii) 336(2)
337 337
338(1) 338(1)
XXIX Miscellaneous Fraud involving an amount of at least ten Lakh rupees or 1% of the turnover of the company, whichever is lower  not involving public Interest 447
Fraud involving an amount of at least ten Lakh rupees or one percent. of the turnover of the company, whichever is lower Involving Public Interest 447
Intentionally gives false Evidence 449
452(1) 452(2)

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Qualification: Student - CA/CS/CMA
Company: Indian Corporate Law Service Academy
Location: Gurgaon, Haryana, India
Member Since: 10 Jul 2021 | Total Posts: 3

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