list of
provisions of Companies Act, 1956, which are amended by
Companies (Amendment) Act, 2000, penalty leviable
|
Section |
Nature of Offence |
Existing penalty in the Companies Act (Amt. in Rs.) |
Penalty as increased by the Companies (Amdt.) Act, 2000
(Amt. in Rs.) |
|
11(5) |
Being a member of a company, association or partnership formed exceeding certain numbers |
1000 |
10000 |
|
22(2) |
Failure to comply with any direction given by Central Government to change the name of an existing company (for every day of default) |
100 |
1000 |
|
25(10) |
Failure to remove name of Chambers of Commerce consequent upon revocation of licence (for every day of default) |
500 |
5000 |
|
39(2) |
Failure to send copies of memorandum, articles or agreement to members on demand (for each offence) |
50 |
500 |
|
40(2) |
Issue of altered copy of memorandum, articles, or resolutions (for each copy so issued) |
10 |
100 |
|
44(3) |
Failure to file statement in lieu of prospectus by a private company on ceasing to be a private company (for every day of default) |
500 |
5000 |
|
44(4) |
Filing with the Registrar prospectus or statement in lieu of prospectus containing any untrue statement |
5000 |
50000 |
|
49(9) |
Failure to comply with the provisions of sub-section (1) to section (8) relating to investments of company to be held in its own name |
5000 |
50000 |
|
56(3) |
Issue of application form for shares or debentures without memorandum containing salient features of prospectus or non-supply of copy of prospectus on demand |
5000 |
50000 |
|
58A(6)(a) |
Invitation of deposits in contravention of |
|
|
|
(ii) |
the provisions of sub-sections (1) and (2) of section 58A - (Maximum penalty) |
100000 |
1000000 |
|
58A(6)(a) |
Invitation of deposits in contravention of |
|
|
|
(ii) |
the provisions of sub-sections (1) and (2) of section 58A - (Minimum penalty) |
5000 |
50000 |
|
58A(10) |
Failure to comply with the Company Law Board’s order in regard to repayment of deposit to a deposit holder - (for each day of default) |
50 |
500 |
|
59(1) |
Issue of prospectus in contravention of section 57 or 58 |
5000 |
50000 |
|
60(5) |
Issue of prospectus without the copy thereof being filed with the Registrar |
5000 |
50000 |
|
63(1) |
Issuing a prospectus which includes any untrue statement |
5000 |
50000 |
|
68 |
Fraudulently inducing persons to invest money |
10000 |
100000 |
|
69(4) |
Failure to keep application moneys in Scheduled Bank until returned or certificate to commence business is obtained and also for making allotment of shares before minimum subscription is received |
5000 |
50000 |
|
70(4) |
Failure to file statement in lieu of prospectus or non-attachment of written statement |
1000 |
10000 |
|
70(5) |
Delivery to the Registrar statement in lieu of prospectus which includes any untrue statement |
5000 |
50000 |
|
72(3) |
Prohibition for allotment of shares unless the conditions as specified in the section are fulfilled |
5000 |
50000 |
|
73(2B) & |
Default in repayment of excess application |
|
|
|
(3) |
moneys and interest in sub-section (2B) and failure to keep application moneys in Scheduled Bank in sub-section (3) |
5000 |
50000 |
|
75(4) |
Failure to comply with the provisions of section 75 relating to return of allotment (for each day of default) |
500 |
5000 |
|
75(4), proviso |
Showing shares as allotted for cash in the return of allotment in contravention of proviso to section 75(1)(a) if cash has not actually been received in respect of such allotment |
5000 |
50000 |
|
76(5) |
Failure to comply with the provisions relating to commission and discount |
500 |
5000 |
|
77(4) |
Contravening provisions on purchase by company or loans by company for purchase of its own or its holding company’s shares |
1000 |
10000 |
|
79(4) |
Omitting to include in prospectus certain particulars relating to the issue of shares at a discount |
50 |
500 |
|
80(6) |
Non-compliance with the provisions of the section relating to issue of redeemable preference shares |
1000 |
10000 |
|
80A(3)(a) |
Failure to comply with the requirement relating to redemption of irredeemable preference shares (for each day of default) |
1000 |
10000 |
|
84(3) |
Fraudulently renewing or issuing of duplicate share certificates by a company |
10000 |
100000 |
|
89(3) |
Non-compliance with the provisions relating to termination of disproportionately excessive voting rights in existing company |
1000 |
10000 |
|
95(3) |
Failure to give to the Registrar notice of consolidation, etc., of share capital in accordance with section 95(1) (for each day of default) |
50 |
500 |
|
97(3) |
Failure to file with the Registrar notice of increase of capital or of members within 30 days of passing of resolution (for each day of default) |
50 |
500 |
|
107(5) |
Failing to forward to the Registrar a copy of order of the court in regard to variation of shareholder’s rights |
50 |
500 |
|
108-I |
Acquisition or transfer of share in contravention of sections 108A to 108D |
5000 |
50000 |
|
111(9) |
Non-compliance with the order of Company Law Board relating to registration of transfer |
1000 |
10000 |
|
111(9) |
Failure to give effect to order passed by Company Law Board relating to registration of transfer - (Fine for continuing offence for every day after the first day after which the default continues) |
100 |
1000 |
|
111(12) |
Default in complying with the provisions of section 111 (for each day of default) |
50 |
500 |
|
113(2) |
Failure to complete and having ready for delivery share or debenture certificate within 3 months of allotment, etc. (for each day of default) |
500 |
5000 |
|
115(6) |
Non-compliance with the requirements of section 115 relating to entries in the register in respect of share warrants (for each day of default) |
50 |
500 |
|
118(2) |
Failure to forward a copy of debenture trust deed to members or debenture holders within 7 days at their request |
50 |
500 |
|
118(2) |
Failure to forward a copy of debenture trust deed to members or debenture holders within 7 days at their request - (Fine for continuing offence for every day during which the offence continues) |
20 |
200 |
|
127(2) |
Failure to delivery to Registrar for registration particulars of charges |
500 |
5000 |
|
133(2) |
Delivering debentures or certificate of debenture stock without endorsing on its certificates of registration |
1000 |
10000 |
|
137(3) |
Default in complying with the provisions of section 137 regarding appointment of receiver or manager (for each day of default) |
50 |
500 |
|
142(1) |
Failure to file with the Registrar for registration particulars of any charge, etc. (for each day of default) |
500 |
5000 |
|
142(2) |
Not complying with any of the requirements of the Act as to registration with the Registrar of any charge, etc. |
1000 |
10000 |
|
143(2) |
Failure to make entry in register of charges |
500 |
5000 |
|
144(3) |
Refusing to allow inspection of copies of instruments creating charges and company’s register of charges |
50 |
500 |
|
144(3) |
Refusing to allow inspection of copies of instruments creating charges and company’s register of charges - (Fine for continuing offence for every day during which the refusal continues) |
20 |
200 |
|
146(4) |
Non-compliance with the requirements of section 146 in regard to registered office (for each day of default) |
50 |
500 |
|
147(2) |
Non-compliance with section 147(1)(a) in regard to posting or affixing its name, etc., outside office/place of business (for each day of default) |
50 |
500 |
|
147(3)/(4) |
Failure to comply with sub-section (1)(b) and (1)(c), in regard to engraving name on seal, mentioning name on letter head, etc., misuse of seal, letterhead, etc., |
500 |
5000 |
|
148(2) |
Non-compliance with the requirement of section 148(1) regarding publication of authorised as well as subscribed and paid up capital |
1000 |
10000 |
|
149(2A) |
Commencement of any new business in contravention of this sub-section (for each day of default) |
500 |
5000 |
|
149(6) |
Commencement of business or exercising borrowing powers in contravention of section 149 (for each day of default) |
500 |
5000 |
|
150(2) |
Failure to maintain register of members (for each day of default) |
50 |
500 |
|
151(4) |
Committing default in complying with the provisions of sub-sections (1) to (3) relating to index of members |
50 |
500 |
|
152(3) |
Committing default in complying with the requirements of sub-sections (1) and (2) regarding register and index of debenture-holders |
50 |
500 |
|
154(2) |
Closing register of members or debenture-holders otherwise than in compliance with the provisions of section 154(1) (for each day of default) |
500 |
5000 |
|
157(3) |
Failure to file with the Registrar notice of situation of office where foreign register is kept (for each day of default) |
50 |
500 |
|
158(9) |
Not transmitting to registered office in |
50 |
500 |
|
162(1) |
Non-compliance with the provisions of sections 159, 160 and 161 regarding annual return (for each day of default) |
50 |
500 |
|
163(5) |
Refusing inspection, making of any extract or sending any copy within specified time, of registers, returns, etc. (for each day of default) |
50 |
500 |
|
165(9) |
Non-compliance with the provisions relating to statutory meeting |
500 |
5000 |
|
168 |
Failure to hold annual general meeting in accordance with section 166 or to comply with any directions of Central Government under section 167(1) |
5000 |
50000 |
|
168 |
Failure to hold annual general meeting in accordance with section 166 or to comply with any directions of Central Government under section 167(1) - (Fine for continuing offence for every day during which such default continues) |
250 |
2500 |
|
176(2) |
Omitting to state in notice of meeting that a member is entitled to appoint proxy and that proxy need not be a member |
500 |
5000 |
|
176(4) |
Invitation to appoint proxy specified in the invitation issued at company’s expense |
1000 |
10000 |
|
188(8) |
Non-compliance with the provisions of section 188 regarding circulation of members’ resolutions |
5000 |
50000 |
|
192(5) |
Failure to file with the Registrar certain resolutions or agreements in accordance with section 192(1) (for each day of default) |
20 |
200 |
|
192(6) |
Failure to annex copies of certain resolutions or agreements to articles or not forwarding to members on request copy of certain resolutions or agreements (for each copy) in respect of which default is made |
10 |
100 |
|
193(6) |
Non-compliance with the provisions of section 193 regarding minutes of proceedings of general meetings and of board and other meetings |
50 |
500 |
|
196(3) |
Refusing inspection of minutes book of general meetings or not furnishing to member on request a copy of minutes within specified time (for each offence) |
500 |
5000 |
|
197(2) |
Circulating or advertising proceedings of general meetings without including certain particulars (for each offence) |
500 |
5000 |
|
202(1) |
Discharging of functions of a director or manager by an undischarged insolvent, etc. |
5000 |
50000 |
|
203(7) |
Acting as a director in contravention of an order of the Court |
5000 |
50000 |
|
205A(8) |
Failure to transfer the amount of accumulated profits to unpaid dividend account and other provisions of section 205A (for each day of default) |
500 |
5000 |
|
207 |
Fine for failure to distribute dividends within 30 days (for every day of default) |
Not-specified |
1000 |
|
209(5) |
Failure to keep proper books of account, etc. |
1000 |
10000 |
|
209(7) |
Failure to follow the duty of seeing the requirements to be complied in this section |
1000 |
10000 |
|
209A(8) |
Failure to comply with provisions of section 209A, i.e., inspection of books of account |
5000 |
50000 |
|
210(5)/(6) |
Failure to keep annual accounts (for each offence) |
1000 |
10000 |
|
211(7) |
Failure to comply with the provisions of section 211 in regard to preparation of balance sheet and profit and loss account showing a true and fair view (for each offence) |
1000 |
10000 |
|
211(8) |
Failure to follow the duty of seeing the provisions of section 211 (for each offence) |
1000 |
10000 |
|
212(9) |
Failure to comply with the provisions of section 212 in regard to attaching of the accounts of subsidiary company (for each offence) |
1000 |
10000 |
|
212(10) |
Default in making the duty of seeing the requirements of section 212 (for each offence) |
1000 |
10000 |
|
217(5) & |
Failure to take reasonable step relating to |
|
|
|
(6) |
Board’s report (for each offence) |
2000 |
20000 |
|
218 |
Improper issue, circulation or publication of balance sheet or profit and loss account |
500 |
5000 |
|
219(3) & |
Failure to send to members, etc., copies of |
|
|
|
(4) |
balance sheet, auditors report, etc., 21 days before the date of meeting and default in complying with certain demands for copies of balance sheet, etc., within 7 days of such demand |
500 |
5000 |
|
220(3) |
Failure to file with Registrar copies of balance sheet, etc. (for everyday of default) |
50 |
500 |
|
221(4) |
Failure to disclose certain payments, to the company |
5000 |
50000 |
|
223(4) |
Non-compliance by certain companies with the provisions of section 223 regarding publication of half-yearly statement in the specified form (for each day of default) |
50 |
500 |
|
224(4) |
Failure to give notice to the Central Government within 7 days where no auditors are appointed at an annual general meeting |
500 |
5000 |
|
232 |
Failure of company to comply with the provisions of sections 225 to 231 in regard to auditors |
500 |
5000 |
|
233 |
Non-compliance by auditor with sections 227 and 229 |
1000 |
10000 |
|
233A(5) |
Failure to comply with the Central Government’s order in regard to furnishing information as required by special auditor |
500 |
5000 |
|
233B(11) |
Failure to comply with the provisions of section 233B regarding audit of cost accounts |
5000 |
50000 |
|
234(4)(a) |
Failure to furnish information or explanation or production of books and papers |
500 |
5000 |
|
234(4)(a) |
Failure to furnish information or explanation or production of books and papers -(Fine for continuing offence for every day after the first during which the offence continues) |
50 |
500 |
|
240(3) |
Disobedience to the order directing production of books before inspector or a person authorised by the Central Government |
2000 |
20000 |
|
240(3) |
Disobedience to the order directing production of books before inspector or a person authorised by the Central Government (Fine for continuing offence for every day after the first during which the failure or refusal continues) |
200 |
2000 |
|
250(9) & |
Exercise of right in respect of shares and |
|
|
|
(10) |
debentures in violation of restrictions im-posed by Company Law Board and issuance of shares in contravention of the restriction specified in sub-section (2) |
5000 |
50000 |
|
269(6) |
Disobedience of Central Government’s order in regard to vacation of office as managing or wholetime director or manager (for each day of default) |
500 |
5000 |
|
269(10)(a) |
Order of Company Law Board declaring that contravention of requirement of Schedule XIII has taken place - (Penalty against the Company) |
5000 |
50000 |
|
269(10)(b)/ |
Order of Company Law Board declaring |
|
|
|
(c) |
that contravention of requirement of Schedule XIII has taken place - (Penalty against the officer who is in default) |
10000 |
100000 |
|
269(11) |
Contravention of the provisions of sub-section (10)/direction given by CLB, every officer who is in default (for each day of default) |
50 |
500 |
|
272 |
Acting as director without holding qualification shares (for each day of default) |
50 |
500 |
|
279 |
Acting as director of more than 15 companies after the first 15 (for each additional company) |
5000 |
50000 |
|
283(2A) |
Functioning as a director after vacation of office (for each day of default) |
500 |
5000 |
|
286(2) |
Default in giving notice of board meetings |
100 |
1000 |
|
294(8) |
Neglecting or refusing to furnish information required by Central Government or to produce any books and papers, etc. |
5000 |
50000 |
|
294(8) |
Neglecting or refusing to furnish information required by Central Government or to produce any books and papers, etc. (Fine for continuing offence for every day after the first during which such refusal continues) |
50 |
500 |
|
295(4) |
Loans to directors, etc., without approval of Central Government |
5000 |
50000 |
|
299(4) |
Failure to disclose interest in a contract by the Director |
5000 |
50000 |
|
300(4) |
Participation in Board meeting by interested director |
5000 |
50000 |
|
301(4) |
Non-compliance with the provisions of sections 301(1), (2) and (3) in regard to register of contracts, companies and firms in which directors are interested |
500 |
5000 |
|
302(5) |
Failure to disclose to the members director’s interest in contract appointing manager/managing director |
1000 |
10000 |
|
303(3) |
Failure to keep register of directors or to file with the Registrar return of directors, managing director, manager and secretary (for each day of default) |
50 |
500 |
|
304(2)(a) |
Refusing inspection to any member of register kept under section 303 |
50 |
500 |
|
305(1) |
Failure by a director to inform change of his particulars |
500 |
5000 |
|
307(7) |
Failure to produce at annual general meeting register of director’s shareholdings |
500 |
5000 |
|
307(8) |
Failure to comply with the provisions of sections 307(1) and (2) in regard to register of director’s shareholdings |
5000 |
50000 |
|
307(8) |
Failure to comply with the provisions of sections 307(1) and (2) in regard to register of directors shareholdings - (Fine for continuing offence for every day during which the default continues) |
20 |
200 |
|
308(3) |
Failure to make disclosure of shareholdings by a director |
5000 |
50000 |
|
320(3) |
Failure to secure particulars regarding payment to directors for loss of office, etc. in connection with transfer of shares |
250 |
2500 |
|
322(3) |
Failure to comply with the section by a limited company in which liability of directors is unlimited |
1000 |
10000 |
|
371(1) |
Being a party to contravention of secs. 369, 370 and 370A in regard to loans to companies under same management |
5000 |
50000 |
|
374 |
Contravening section 372 [excluding sub-sections (6) and (7)] or 373 in regard to investments made in shares and debentures of companies in the same group |
5000 |
50000 |
|
383A(1A) |
Failure to appoint wholetime secretary (for each day of default) |
50 |
500 |
|
391(5) |
Failing to annex to the copy of memorandum certified copy of court’s order sanctioning any compromise, arrangement with creditors or members (for each copy in respect of which default is made) |
10 |
100 |
|
393(4) |
Failure to comply with the requirements of section 393 in regard to compromises or arrangements with creditors or members |
5000 |
50000 |
|
393(5) |
Failure to give information by directors relating to compromise or arrangement with creditors or members |
500 |
5000 |
|
394(3) |
Failure to file with the Registrar a certified copy of court’s order on application for sanctioning of a compromise or arrangement |
50 |
500 |
|
395(4A)(b) |
Issue of circular containing or recommending acceptance of offer for transfer of shares which has not been registered |
500 |
5000 |
|
404(4) |
Failure to file with the Registrar a certified copy of the order to alter the memorandum and articles |
5000 |
50000 |
|
407(2)(c) |
Acting as a director, etc., in contravention of section 407(1)(b) |
5000 |
50000 |
|
416(3)(b) |
Non-compliance with the requirements of section 416 in regard to contract by agents of company in which company is undisclosed principal |
200 |
2000 |
|
420 |
Failure to collect provident fund and payment of contribution to the trust |
1000 |
10000 |
|
423 |
Non-compliance with the requirements of sections 421 and 422 in regard to receivers |
200 |
2000 |
|
445(1) |
Default by petitioner and the company to file with the Registrar, a certified copy of order on the making of a winding up order (for each day of default) |
100 |
1000 |
|
454(5) |
Default in submitting to the Official Liquidator a statement as to the affairs of the company in the prescribed form (for each day of default) |
100 |
1000 |
|
481(3) |
Default in forwarding to the Registrar a copy of the Court’s order dissolving the company within 30 days of the order (for each day of default) |
50 |
500 |
|
485(2) |
Default in giving notice of the resolution for voluntary winding up in the official gazette, within 14 days and also in some newspaper, circulating in the district where the registered office of the company is situate (for each day of default) |
50 |
500 |
|
488(3) |
Making of a declaration of solvency under section 488 without having reasonable grounds for the opinion that the company will be able to pay its debts in full, within the period specified in the declaration |
5000 |
50000 |
|
493(3) |
Default in giving notice to the Registrar of the appointment of liquidator or liquidators under section 490, of every vacancy occurring in the office of liquidator and of the name of liquidator or liquidators appointed to fill every such vacancy under section 492 within 10 days of the event to which it relates (for each day of default) |
100 |
1000 |
|
495(2) |
Failure to summon a meeting of the creditors in case of insolvency and to lay before the meeting a statement of the assets and liabilities of the company |
500 |
5000 |
|
496(2) |
Default by liquidator to call general meeting at the end of each year (for each failure) |
100 |
1000 |
|
497(3) |
Default in sending to the Registrar a copy of the accounts and return within one week of the holding of the meeting (for each day of default) |
50 |
500 |
|
497(7) |
Failure to call a general meeting of the company as required by section 497 |
500 |
5000 |
|
500(6) |
Default in complying with the provisions relating to the calling of meeting of creditors, etc., and advertising the notice of the meeting of the creditors in the official gazette and at least in two newspapers |
1000 |
10000 |
|
501(2) |
Default by company in giving notice to the Registrar of any resolution passed at creditors’ meeting under section 500 (for each day of default) |
50 |
500 |
|
508(2) |
Default by liquidator in calling a general meeting of the company and a meeting at the end of the first year from the commencement of winding up and at the end of each succeeding year, and failure to lay before the meeting an account of his acts and dealings with respect to the proceedings and position of the winding up (for each failure) |
100 |
1000 |
|
509(3) |
Default by liquidator in sending to the Registrar a copy of the accounts and returns of the holding of the meetings and of the date or dates on which they were held (for each day of default) |
50 |
500 |
|
509(7) |
Failure of the liquidator to call a final general meeting of the company or creditors |
500 |
5000 |
|
513(3) |
Appointment of a body corporate as liquidator |
1000 |
10000 |
|
514 |
Giving, agreeing, or offering to give, to any member or creditor of company any gratification with a view to securing his own appointment or nomination as the company’s liquidator, or securing or preventing the appointment or nomination of some person other than himself |
1000 |
10000 |
|
516(2) |
Failure by liquidator to publish in the official gazette and deliver to the Registrar for registration a notice of his appointment in the prescribed form (for each day of default) |
50 |
500 |
|
542(3) |
Knowingly being a party to the carrying on of any business of a company, when it is being wound up with intent to defraud creditors of the company or any other persons or for any fraudulent purpose |
5000 |
50000 |
|
547(2) |
Default by a company which is being wound up, to make a mention of the fact that the company is being wound up in every invoice, order for goods or business letter, issued by the company or by a liquidator or a receiver or manager of the property of the company in which the name of the company appears |
500 |
5000 |
|
550(4) |
Acting in contravention of any rule or of any direction of the Central Government under sub-section (1) concerning disposal of books and papers of a company |
5000 |
50000 |
|
551(5), proviso |
Wilful default by liquidator in causing statement to be audited (for each day of default) |
1000 |
10000 |
|
551(5) |
Default by liquidator to comply with any of the requirements of the section relating to pending liquidations (for every day of default) |
500 |
5000 |
|
559(2) |
Default by any person, on whose application the court passes an order declaring the dissolution to be void, to file within 30 days after making of the order or such further time as the court may allow a certified copy of the order with the Registrar (for each day of default) |
50 |
500 |
|
598 |
Failure by any foreign company to comply with sections 591 to 597 |
1000 |
10000 |
|
598 |
Failure by any foreign company to comply with sections 591 to 597 (Fine for continuing offence), (for every day during which the default continues) |
100 |
1000 |
|
606 |
Contravention of the provisions of sections 603, 604 and 605 relating to prospectus of foreign companies |
5000 |
50000 |
|
615(6) |
Failure to furnish information or statistics, etc., required by the Central Government |
1000 |
10000 |
|
621A(1)& (6) |
Maximum amount of fine for composition of offence by Regional Director [sub-section (1)(b)] and failure to comply with order of Company Law Board or Regional Director for filing any document return etc. |
5000 |
50000 |
|
629A |
Penalty for offences, for which no punishment is provided elsewhere in the Act |
500 |
5000 |
|
629A |
Penalty for offences, for which no punishment is provided elsewhere in the Act (Fine for continuing offence for every day of such default) |
50 |
500 |
|
630(1) |
Wrongfully withholding or wrongfully taking possession of property of the company by an officer |
1000 |
10000 |
|
631 |
Making improper use of the words “limited” and “private limited” (for each day of default) |
50 |
500 |
|
642(2) |
Power of Central Government to make rules and to provide for penalty for their contravention (This is not an offence) |
500 |
5000 |
|
642(2) |
Power of Central Government to make rules and to provide for penalty for their contravention (This is not an offence) (Fine for continuing offence for every day of such default) |
50 |
500 |