PUNISHMENTS AND CONSEQUENCES

OF DEFAULT UNDER COMPANIES ACT

2013
Secti liabil Imprison fine
particulars
on ity ment
464 Illegal Every 1 lakh
association member
s
4(5) Incorrect applica 1 lakh
information nt
7 False Any Under sec
particulars for person 447
incorporation

8 Non- Compa 10
compliance ny Max 3 lakhs
under sec 8 Directo years to 1
(company r or crore
with officers 25,000
charitable to 25
objects) lakhs
8 If the above Every Punishable
consequences officer under sec
is done in 447
fraudulent
manner
16 Compulsory Compa 1000
name change ny every
officer day
5000
to 1
lakh
16 Notice to ROI 1000
for change in every
capital clause day or
within 30 days 5 lakhs
w.e.l
16 Copies of 1000
MOA, AOA every
to members day or
on demand 1 lakh
w.e.l
33 Default in Compa 50,000
abridged ny
prospectus
26 Non- Compa 50,000
compliance ny Max 3 to 3
with sec 26 officers years lakhs
(issue of 50,000
prospectus) to 3
lakhs
34 Criminal Officers 6 months to Min -
liability for 10 years amount
misstatement 3 years to equal
in prospectus 10 years If to
under 447 it involves fraud
public Max -
interest 3 times
of the
amount
36 Punishment Under 447
for fraud for
 inducing the
public to
invest money
38 Punishment Under 447
on personation
for acquisition
of securities
42 Private Promot Amoun
placement ors and t
without the director involve
issue of s d in
prospectus offer
or
invitati
on or
2
crores
w.e.h

refunds
all the
monies
within
30
days
64 Filing with Compa 1000
ROC for ny and every
conversion of officer day or
shares into 5 lakhs
stock w.e.l
40 (5) Default in Compa 5 lakhs
underwriting ny Max 1 year to 50
commission officer lakhs
50,000
to 3
lakhs
39(2) Collection of 1000
minimum per day
application up to 1
money lakh
40(3) Deposit of Compa 5 lakhs
application ny Max 1 year to 50
money in officer lakhs
separate bank 50,000
account to 3
lakhs
40(11) Listing Compa 5 lakhs
permission ny Max 1 year to 50
form stock officer lakhs
exchange 50,000
to 3
lakhs
57 Impersonation Person 1 year to 3 1 lakh
as shareholder in years to 5
default lakhs
46(5) Issue of Compa Min. 5
duplicate ny Under sec times
certificate of officer 447 of face
shares value
 of
shares
Max.
10
times
of face
value
or 10
crores
w.e.h

66 Reduction of compan 5 lakhs

share capital y to 25
lakhs
67 Restriction to Compa 1 lakh
buy back or ny Max 3 to 25
financing officer years lakhs
purchase of 1 lakh
own shares to 25
lakhs
68 Non- Compa 1 lakh
compliance of ny 3 years to 3
procedures for officer lakhs
buy back 1 lakh
to 3
lakhs
56(1) Transfer or Compa 25,000
to transmission ny to 5
56(5) of shares officer lakhs
 10,000
to 1
lakh
58(4) Contravening 1 year to 3 1 lakh
the order of years to 5
tribunal for lakhs
refusal of
registration of
transfer
59 Contravening Compa 1 lakh
the order of ny Max 1 year to 5
tribunal officer lakhs
regarding 1 lakh
rectification of to 3
register on lakhs
transfer/trans
mission of
shares
88(5) Non- Compa 50,000
maintenance ny and to 3
of register of officer lakhs
members 1000
every
day on
continu
ing
default
91(2) Closure of Compa 5000
register of ny and every
officer day
 members Max 1
without notice lakh
92 Wrong secretar 50,000
certification of y to 5
annual returns lakhs
by secretary
92 Non filing of Compa 50,000
annual return ny Max 6 to 5
officer months lakhs
50,000
to 5
lakhs
118 Default in Compa 25,000
maintain ny 5,000
minutes book officer
118 Penalty for Person 2 years 25,000
tampering of in to 1
minutes default lakh
117 Filing of Compa 5 lakhs
resolutions ny to 25
and officer lakhs
agreements 1 lakh
with ROC to 5
lakhs
74(3) Failure to Compa 1 crore
repay deposit ny 7 years to 10
or interest officer crores
within time 25
limit lakhs
 to 2
crores
86 Consequences Compa 1 lakh
for non- ny 6months to 10
registration of officer lakhs
charges 25,000
to 1
lakh
60 Publication of Compa 10,000
authorised or ny 5,000
subscribed officer
capital
120 Electronic 5,000
maintenance and
inspection or 500
security of per day
documents
w.e.l whichever is less
w.e.h whichever is high
note: any default done in fraudulent manner shall be
punishable under sec 447