Penalties Under Indian Companies Act

Indian Companies Act 1956 provides a range of obligations to be discharged by every company registered under this act and also on the part of its Directors / Managers / ecretaries! etc" #he la$ relating to penalties arising from non%compliance of various legalities is provided in tabulated format here in belo$" #he basic &no$ledge of the Company 'a$ is essential for every company director to avoid superfluous annoyance arising from lac& of &no$ledge of the la$" r" (o 1 ection 16* (ature of Default +ailing to hold A,M in accordance $ith section 166 )enalty 5-!---/% ./!5-- per day" )ersons to be held responsible for offence #he company and every officer of the company $ho is in default" #he company and every officer of the company $ho is in default" Any person! not being a director of the company" #he company and every officer of the company $ho is in default" #he company and every officer of the company $ho is in default" #he company and every officer of the company $ho is in default" #he company and every officer of the company $ho is in default"

//-012

+ailure to file Annual Accounts 3s"5--/% per day $ith MCA Default in laying Accounts at the A,M Imprisonment up to 6 months or fine up to 1-!--- or both"

/1-052 062

/1*

Improper issue! circulation or publication of 5alance sheet or +ine up to 3s 5!---/% )rofit and 'oss Account +ailure to sent members Annual Accounts / Auditors 3eport /1 +ine up to 3s"5!---/% days before meeting" Default in complying $ith certain demands for copies of +ine up to 3s"5!---/% Annual Accounts $ithin 6 days (on compliance $ith the provisions of section 15-! 16or 161 $rt Annual 3eturn" +ine up to 3s"5--/% )er day"

/19012

/19042

16/012

+ailure to file $ith MCA certain 3esolutions or +ine up to 3s"/--/% )er Agreements entered in day" accordance $ith section 19/ 012 Default in complying $ith the Imprisonment up to 6 /16052 062 provisions of subsection 012 to months or fine up to 012 regarding 5oards report" 3s"/-!---/%or $ith both Contents 7 manner of service 161012 0/2 of notice in contravention of the provisions of the Act" 191062 +ine up to 5!---/%7 further 5-- for each day or default" #he company and every officer of the company $ho is in default" :very officer of the company $ho is in default"

1-

11

(oncompliance $ith provisions of 191 regarding minutes of +ine up to 3s"5--/% proceedings of ,eneral Meeting" 8mitting to state in notice that a member is entitled Appoint a pro9y and that the pro9y need not be a member" +ine up to 3s"5!---/%

1/

1660/2

11

+ailure to prepare Annual Imprisonment up to 6 /11062 0*2 Accounts in he form 7 contents months or 3s"1-! --- or specified in the section" both"