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PENALTIES Flashcards

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1
Q

124
“Failure to comply with
Unpaid Dividend account provisions”

A

Company
Fine: Minimum 5,00,000 ; Maximum 25,00,000
Officer-in- default
Fine: Minimum 1,00,000 ; Maximum 5,00,000

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2
Q

127

Failure to pay dividend within 30 days of declaration of dividend

A

Director
“(i) Imprisonment: Maximum 2 years; and
(ii) Fine: Minimum: Rs. 1,000 per day for each day of default.”
Company
Liable to pay simple interest @ 18% per annum

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3
Q

128(6)

Contravention of Sec. 128 (Maintenance of proper books of account)

A

Persons responsible
“(i) Managing director
(ii) Whole-time director in charge of finance
(iii) Chief Financial Officer
(iv) Any other person of a company charged by the Board with such duty”
Punishment for contravention
“(i) Imprisonment upto 1 year, or
(ii) Fine: Minimum Rs. 50,000; Maximum Rs. 5,00,000.
(iii) Both

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4
Q

134(8)
“Contravention of Sec.
134 (Board’s Report)”

A

Company
Fine: Minimum Rs. 50,000; Maximum Rs. 25,00,000.
Every officer in default
“(i) Imprisonment upto 3 years; or
(ii) Fine: Minimum Rs. 50,000, Maximum Rs. 5,00,000; or
(iii) Both”

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5
Q

135

Corporate Social Responsibility

A

Company
i) Fine: Minimum Rs. 50,000; ii)Maximum Rs. 25,00,000
Every officer in default
“i) Imprisonment upto 3 years
ii) Fine: Minimum Rs. 50,000; iii)Maximum Rs. 5,00,000
iv) Both”

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6
Q

136(3)
“Contravention of Sec.
136 (Circulation of”

A

Company

Fine: Rs. 25,000

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7
Q

137(3)
“financial statements)
Contravention of Sec. 137 (Filing of financial statement and other documents with the Registrar)”

A

Every officer in default
Fine: Rs. 5,000
Company
“Penalty of Rs. 1,000 for every day during which the failure continues but which shall not be more than Rs. 10 lakh.
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018”
MD and CFO
“(i)Penalty-Min:1lakh
(ii)Continuingfailure-100/day upto5lakh”
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018
In case there is no MD and CFO, a director who is charged by the Board with the responsibility of complying with the provisions of this section, shall be liable to punishment. However, if no director is so charged by the Board, then, all the directors of the company shall be liable to punishment.

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8
Q

140(3)
Contravention of Sec. 140(2) (Failure to file the Statement in Form ADT – 3 by the auditor within 30 days of resignation)

A

Person liable for contravention
The auditor
Punishment for contravention
“(i) Minimum Penalty: Rs. 50,000 orremunerationwhicheveris less
(ii)Continuingfailure-500/day upto5lakh
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018”

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9
Q 
"147(1)
and 148(8)"
"Contravention of Sec. 139 to 146
OR"
Contravention of Sec. 148
A 
Company
"(i) Minimum Fine: Rs. 25,000
(ii) Maximum Fine: Rs. 5,00,000"		
Officer in default
"(i) Maximum Imprisonment: 1 year, or
(ii) Fine: Minimum Rs. 10,000; Maximum Rs. 1,00,000; or
(iii) Both"
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10
Q

“147(2)
and 148(8)”
“Contravention of Sec. 139, 143, 144 or 145 by the auditor
OR” Contravention of Sec. 148 by the cost auditor

A

Person liable for contravention
“(i) The auditor
(ii) The cost auditor”
Punishment for contravention
“(a) Fine: Minimum Rs. 25,000; Maximum Rs. 5,00,000 orfour timestheremunerationofthe auditor,whicheverisless
(b) If a contravention is committed knowingly or wilfully with the intention to deceive the company or its shareholders or creditors or tax authorities, then punishment shall be-
(a) Maximum Imprisonment: 1 year; and
(b) Fine: Minimum Rs. 1 lakh; Maximum Rs. 25 lakh oreight timestheremunerationofthe auditor,whicheverisless
Companies (Amendment) Act, 2017, w.e.f 9-2-2018”

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11
Q

159

Contravention of Sec. 152, 155 and 156

A

PenaltyuptoRs 50,000plusuptoRs.500perday incaseofcontinuingdefault. Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018

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12
Q

165(6)

A person accepts directorships exceeding the maximum number of directorships

A

Penalty Rs. 5,000 for during every day after the first which the contravention continues.Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018

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13
Q

166(7)

Contravention of Sec. 166 (Duties of directors)

A

The director shall be punishable with-

(i) Minimum fine of Rs. 1 lakh:
(ii) Maximum fine of Rs. 5 lakh.

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14
Q

167(2)

A person functions as a director even when his office is vacated

A

(i) Imprisonment upto 1 year; or
(ii) Fine: Minimum Rs or . 1 lakh; Maximum Rs. 5 lakh;
(iii) Both

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15
Q

172
“Contravention of any provision of Chapter XI of CA, 2013 (viz. Sec.
149 to 172) for which no specific punishment is provided”

A

The company and every officer of the company who is in default shall be punishable with-

(i) Minimum fine of Rs. 50,000
(ii) Maximum fine of Rs. 5 lakh

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16
Q

173(4)

Failure to give notice of Board meeting

A 
Person liable for contravention	
"Every officer of the company whose
duty is to give notice of Board meeting."	
Punishment for contravention	
Penalty of Rs. 25,000
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17
Q

178(8)
Contravention of Sec. 177 or 178 (Audit Committee, Vigil “Mechanism and
Nomination and Remuneration Committee)”

A 
Company	
"(i) Minimum Fine: Rs. 1 lakh
(ii) Maximum Fine: Rs. 5 lakh"	
Officer in default	
"(i) Maximum Imprisonment: 1 year
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 1 lakh; or
(iii) Both"
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18
Q

182(4)

Contravention of Sec. 182 (Political contribution)

A

Company
Fine: Upto 5 times the amount so contributed
Officer in default
“(i) Imprisonment upto 6 months, and
(ii) Fine upto 5 times the amount so contributed”

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19
Q

184(4)
“Failure to disclose interest u/s 184(1) or
184(2) or participation” in the contract or arrangement

A 
Person liable for contravention	
The director concerned	
Punishment for contravention	
"(i) Imprisonment upto 1 year; or
(ii) Fine: upto Rs. 1 lakh; or
(iii) Both"
20
Q

185(4)
“Contravention of Sec. 185 (Loans to directors.
Etc.,)”

A

Company
Fine: Minimum: Rs. 5 lakh, Maximum: Rs. 25 Lakh
Officer in default/ director/ any other person to whom loan is advanced
“(i) Imprisonment: Maximum 6 months
(ii) Fine: Minimum: Rs. 5 Lakh; Maximum: Rs. 25 Lakh
(iii) Both ( both is not there for officer in default)”

21
Q

186(13)
“Contravention of Sec. 186 (Loans, investments
etc. by a company)”

A

Company
Fine: Minimum: Rs. 25,000; Maximum: Rs. 5 Lakh
Officer in default
“(i) Imprisonment: Maximum: 2 years; and
(ii) Fine: Minimum: Rs. 25,000; Maximum: Rs. 1 Lakh”

22
Q

187(4)
“Contravention of Sec. 187 (Investments of
company to be held in” its own name)

A

Company
Fine: Minimum Rs. 25,000; Maximum: Rs. 25 Lakh
Officer in default
“(i) Imprisonment: Maximum: 6 months; or
(ii) Fine: Minimum: Rs. 25,000; Maximum: Rs. 1 Lakh; or
(iii) Both”

23
Q

188(5)

Contravention of Sec. 188 (Related party transactions)

A

Person liable for contravention
The director or any other employee who had entered into such contract or arrangement.
Punishment for contravention
“(i) In case of a listed company, he shall be punishable with
(a) Imprisonment upto 1 year, or
(b) Fine: Minimum Rs. 25,000; Maximum Rs. 5 lakh; or
(c) Both.
(ii) In case of any other company, he shall be punishable with fine: Minimum Rs. 25,000; Maximum Rs. 5 lakh.”

24
Q

189(6)
“Contravention of Sec. 188 (Registers of contracts or arrangements in which
directors are interested)”

A

Person liable for contravention
Every director who fails to comply with the provisions of this section and the rules made thereunder.
Punishment for contravention
Penalty of Rs. 25.000

25
Q

190(3)
“Contravention of Sec.
190 (Contract of” employment with managing or whole- time directors)

A

Company
Penalty of Rs. 25,000
Officer in default
Penalty of Rs. 5,000 for each default

26
Q

191(5)
Contravention of Sec. 191 (Payment to directors for loss of office, etc. in connection with transfer of undertaking, property or shares)

A 
Person liable for contravention	
Director concerned	
Punishment for contravention	
"PenaltyofRs.1lakh
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018"
27
Q

197(15)

Contravention of Sec. 197 (Managerial remuneration)

A

Person liable for contravention
Any person who contravenes the provisions of Sec. 197
Punishment for contravention
“Penalty: Minimum: Rs. 1 Lakh; Maximum Rs. 5 lakh
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018”

28
Q

203(4)

Contravention of Section 203

A

Company
Penaltyof5lakh
Director or KMP
“Penalty-Minimum50,000
Continuingfaliure-Penalty 1000Rsperdaybutnot exceeding5lakh
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018”

29
Q

204(4)

Contravention of Sec. 204 (Secretarial audit)

A

Person liable for contravention
Any person who contravenes the provisions of Sec. 204
Punishment for contravention
Fine: Minimum Rs. 1 lakh; Maximum Rs. 5 lakh

30
Q

206(7)
Contravention of Sec. 206 (Furnishing of information, inspection and conduct of
inqueries)

A 
Person liable for contravention	
"(i) Company
(ii) Every officer who is in default"	
Punishment for contravention	
"(i) Fine upto Rs. 1 lakh; and
(ii) Fine upto Rs. 500 per day after the first during which the failure continue, in case of a continuing default."
31
Q

207(4)

Contravention of Sec. 207 (Conduct of inspection and inquiry)

A 
Person liable for contravention	
"(i) Company
(ii) Every officer who is in default"	
Punishment for contravention	
"(i) Imprisonment upto one year and
(ii) Fine - Minimum 25,000"	
"Maximum - upto 1 lakh
(iii) Vacation of office in the company
(iv) Disqualified from holding any office in any company."
32
Q

217(6)
“Non-fulfillment of duties
u/s. 217 (viz. disobeying the direction issued by”
Registrar or inspector)

A 
Person liable for contravention	
The director or officer concerned	
Punishment for contravention	
"(i) Imprisonment upto 1 year
and
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 1 lakh
(iii) Vacation of office in the company
(iv) Disqualified from holding any office in any company."
33
Q

217(8)
“Non-fulfillment of duties
u/s. 217 (Duties to produce books, furnish”
information, sign notes of examination, etc.,)

A 
Person liable for contravention	
The person concerned.	
Punishment for contravention	
"(i) Imprisonment upto 6 months and
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 1 lakh
(iii) Further fine upto Rs. 2,000 for every day after the first during which the failure or refusal continues."
34
Q

221(2)
“Contravention of Sec. 221 (Removal, transfer
or disposal of assets in”
contravention of the order of the Tribunal)

A 
Company	
Fine: Minimum Rs. 1 lakh; Maximum Rs. 25 lakh	
Officer in default	
"(i) Imprisonment upto 3 months; or
(ii) Fine: Minimum Rs. 50,000;
Maximum Rs. 5 lakh; or
(iii) Both"
35
Q

222(2)

“Contravention of Sec. 222 (Issue or transfer of securities in” contravention of the order of the Tribunal)

A 
Company	
Fine: Minimum Rs. 1 lakh; Maximum Rs. 25 lakh	
Officer in default	
"(i) Imprisonment upto 6 months; or
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 5 lakh; or
(iii) Both"
36
Q

392
“Contravention of Chapter XXII of CA, 2013 (viz. Sec. 379 to
393)”

A 
Foreign company	
"(i) Fine: Minimum Rs. 1 lakh;
Maximum Rs. 3 lakh
(ii) Additional fine upto Rs. 50,000 for every day after the first during which the contravention continues, in the case of a continuing offence."	
Officer in default	
"(i) Imprisonment upto 6 months; or
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 5 lakh; or
(iii) Both"
37
Q

405
“Contravention of Sec.
405 (Failure to furnish” the required information)

A 
Company	
Fine upto Rs. 25,000	
Officer in default	
"(i) Imprisonment upto 6 months; or
(ii) Fine: Minimum Rs. 25,000;
Maximum Rs. 3 lakh, or
(iii) Both"
38
Q

446B

Contravention by a One Person Company or a small company of

A

Company and Officer in default

Not be more than one half of the penalty specified in such sections

39
Q

“447 and
448”
“1.sub-section (5) of
section 92 (Annual Return)
2. sub-section (2) of section 117 (Filing of MGT-14)
3. sub-section (3) of section 137 (Filing of Financial Statement with ROC)”
Punishment for fraud and punishment for false statement

A

Person liable for contravention
Any person who is guilty of fraud or furnishing false statement involvingan amountofatleasttenlakh rupeesoronepercent,of theturnoverofthe company,whicheveris lower
Punishment for contravention
“(i) Minimum imprisonment: 6 months (3 years, in case the fraud involves public interest);
(ii) Maximum imprisonment: 10 years;
(iii) Minimum fine: Amount involved in the fraud:
(iv) Maximum fine: 3 times the amount involved in fraud:”
“Providedfurtherthatwhere thefraudinvolvesan amountlessthantenlakh rupeesoronepercent,of theturnoverofthe company,whicheveris lower,anddoesnotinvolve publicinterest,anyperson guiltyofsuchfraudshallbe
punishablewith” imprisonmentforaterm whichmayextendtofive yearsorwithfinewhich mayextendtoFIFTYlakh rupeesorwithboth.
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018”

40
Q

449

Punishment for false evidence

A

Person liable for contravention
Any person who intentionally gives false evidence.
Punishment for contravention
“(i) Imprisonment: Minimum 3 years; Maximum 7 years.
(ii) Fine upto Rs. 10 lakh”

41
Q

450
“Penalty for a contravention for which
no specific penalty is”
specified

A 
Person liable for contravention
The person concerned.	
Punishment for contravention
"(i) Fine upto Rs. 10,000 and
(ii) Fine upto Rs. 1,000 for every day after the first during which the contravention continues, where the offence is of continuing nature."
42
Q

451
“Punishment, where same offence is
committed within 3”
years

A

Person liable for contravention
The person concerned.
Punishment for contravention
“(i) Fine: Twice the amount of fine for such offence;
(ii) Imprisonment: Same imprisonment as provided for that offence.”

43
Q

452

Penalty for wrongful withholding of property

A

Person liable for contravention
Officer or employee of the company who wrongfully withholds the property of the company.
Punishment for contravention
(i) Fine: Minimum Rs. 1 lakh; Maximum Rs. 5 lakh

44
Q

453
“Punishment for improper
use of ‘limited’ or ‘private limited’”

A 
Person liable for contravention
The person concerned.	
Punishment for contravention
"(i) Minimum fine: Rs. 500 per day.
(ii) Maximum fine: Rs. 2,000 per day."
45
Q

454

Adjudication of penalties

A

Company
Where company fails to comply with the order within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-fivethousand rupeesbutwhichmay extendtofivelakhrupees.
Officer of the company/ Any other person
Contravention of the order within a period of ninety days from the date of the receipt of the copy of the order,
(i) Imprisonment - upto 6 months
(ii) Minimum fine: Rs. 25,000
(iii) Maximum fine: Rs. 1 lakh
Both
Companies (Amendment) Act, 2019, w.r.e.f. 2-11-2018.

46
Q

454A

Penalty, where same offence is committed within 3 years

A

Twice the amount of penalty

47
Q

464
“Association or partnership of persons
exceeding 50 persons”

A

Person liable for contravention
Every member of such association or partnership.
Punishment for contravention
“(i) Fine upto Rs. 1 lakh
(ii) Personal liability for all the liabilities.”

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