| Section | Offence | Penalty | Person to be held responsible for the offence | |
| Company | Officer in default | |||
| Section 26: Matters to be states in prospectus |
In public company default in the provisions of issue of prospectus | In case of Company: Rs. 50,000/- but which may extend to Rs. 3,00,000/- |
Every company and every person who knowingly continues default | |
| In case of others: Every person who knowingly a party to the issue of such prospectus shall be punishable with: Imprisonment for 3 years, or Fine, not less than Rs. 50,000/- but which may extend to Rs. 3,00,000/-, or both. |
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| Section 40: Securities to be dealt with in Stock Exchanges |
If a company is making public offer and it fails to inform to one or more stock exchange and also fails to follow the provisions of the section | In case of a Company: Not less than Rs. 5,00,000/- but which may extend to Rs. 50,00,000/- |
Yes | Yes |
| In case of officer: Imprisonment for a term which may extend to 1 year OR Fine, not less than Rs. 50,000/- but which may extend to Rs. 3,00,000/-, or both. |
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| Section 53: Prohibition on issue of shares at discount |
If Company issues shares at discount | In case of Company: Fine, not less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment for a term which may extend to 6 months or Fine, not less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/-, or both |
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| Section 57: Punishment for personation of shareholder |
Is a person deceitfully personates as owner of any security or interest, etc, in a Company | Imprisonment, which shall not be less than 1 year but which may extend to 3 years AND Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/- | No | Yes |
| Section 59: Rectification of register of members |
If a Company fails to comply with the orders of tribunal regarding rectification of registers of members | In case of Company: Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment, which may extend to 1 year OR fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 3,00,000/-, OR both |
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| Section 68: Power of company to purchase its own securities |
If a Company violates the Provisions of buy back of Securities | In case of Company: Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 3,00,000/- |
Yes | Yes |
| In Case of an Officer: Imprisonment for a term which may extend to 3 years OR Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 3,00,000/-, or Both |
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| Section 74: Repayment of deposits, etc., accepted before commencement of this Act |
If Company fails to repay deposit or interest thereof, within the time specified | In case of Company: In addition to the payment of the amount of deposit or part thereof and the interest due, Fine, which shall not be less than Rs, 1,00,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment which may extend to 7 years OR Fine, which shall not be less than Rs. 25,00,000/- but which may extend to Rs. 2,00,00,000/- or BOTH |
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| Section 86: Punishment for contravention |
If a Company contravenes the Provisions of charge | In case of a Company: Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 10,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment which may extend to 6 months OR Fine, which shall not be less than Rs. 25,000/- but which may extend to Rs. 1,00,000/-, Or BOTH |
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| Section 92: Annual Return |
If a Company fails to file copy of Annual Return within prescribed time | In case of Company: Fine, which shall not be less than Rs. 50,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment for a term which may extend to 6 months OR Fine, which shall not be less than Rs. 50,000/- but which may extend to Rs. 5,00,000/-, or BOTH |
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| Section 128: Books of account, etc., to be kept by company |
If an officer of the company makes default in the provisions of maintaining accounts of the Company | In case of both: Imprisonment for 1 year OR Fine, which shall not be less than Rs. 50,000/- but may extend to Rs. 5,00,000/-, or BOTH |
No | Yes |
| Section129: Financial statement |
If a company contravenes the provisions of this section, the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above , all the directors shall be punishable. | Imprisonment for 1 years OR Fine, which shall not be less than Rs. 50,000/- but which may extend up to Rs. 5,00,000/- or Both | No | Yes |
| Section 134: Financial statement , Board’s report, etc. |
If Company violates the provisions of Board’s Report. | In case of Company: Fine, which shall not be less than Rs. 50,000/- but which may extend up to Rs. 25,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment for 3 years OR Fine, which shall not be less than Rs. 50,000/- but which may extend to Rs. 5,00,000/- or Both |
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| Section 137: Copy of financial statement to be filed with Registrar |
If a company fails to file the copy of the financial statements with the Registrar | In case of Company: Fine, of Rs. 1,000/- for every day during which failure continues but which shall not be more than Rs. 10,00,000/- |
Yes | Yes |
| In case of Officer in default: In case of managing director and the Chief Financial Officer of the company, if any, OR In the absence of the managing director and the Chief Financial Officer, any other director. OR Who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the directors of the company Imprisonment for a term which may extend to 6 months OR Fine, which shall not be less than Rs. 1,00,000/- buy which may extend to Rs. 5,00,000/- Or Both. |
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| Section 178: Nomination and Renumeration Committee and Stakeholders Relationship Committee |
If Company defaults in constitution of Audit Committee. | In case of a Company: Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment for a term which may extend to 1 year OR Fine, which shall not be less than Rs. 25,000/- but which may extend up to Rs. 5,00,000/- OR both |
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| Section 182: Prohibitions and restrictions regarding political contributions |
If Company contributes more than the ceiling limit defined for political purpose. | In case of a Company: Fine, which shall not be less than Rs. 1,00,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer: Imprisonment for a term which may extend to 1 year OR Fine, which shall not be less than Rs. 25,000/- but which may extend up to Rs. 5,00,000/- OR both |
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| Section 185: Loans to directors, etc. |
If Company while giving Loan to directors, contravenes provisions of section 185(1). | In case of a Company: Fine, which shall not be less than Rs. 5,00,000/- but which may extend to Rs. 25,00,000/- |
Yes | Yes |
| In case of Director or other person: (The director or the other person to whom any loan in advance or guarantee or security is given or provided in connection with any loan taken by him or the other person) Imprisonment which may extend to 6 months OR Fine which shall not be less than Rs. 5,00,000/- but which may extend to Rs. 25,00,000/-, OR both |
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| Section 186: Loan and investment by company |
If Company contravenes the provisions of Inter Corporate loans and Investment. | In case of a Company: Fine, which shall not be less than Rs. 25,000/- but which may extend to Rs. 5,00,000/- |
Yes | Yes |
| In case of Officer; Imprisonment for a term which may extend to 2 years AND Fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 1,00,000/- |
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| Section 188: Related party transactions |
If Any director or any other employee of a company, who had entered into or authorised the contract or arrangement in violation of the provisions of Related party transaction. | In case of Listed Company: Imprisonment for 1 year OR Fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 5,00,000/- OR both |
Yes | Yes |
| In case of Other Company: Fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 5,00,000/- |
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| Section 207: Conduct of inspection and inquiry |
If any officer disobeys the direction issued by the Registrar or the inspector. | Imprisonment for 1 year AND Fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 1,00,000/- | No | Yes |
| Section 405: Power of Central Government to direct companies to furnish information or statistics |
If any Company fails to provide to Central Government, all material information with regard to all its working and statistics etc | In case of Company: Fine of Rs. 25,000/- |
Yes | Yes |
| In case of Officer: Imprisonment of 6 months OR Fine which shall not be less than Rs. 25,000/- but which may extend to Rs. 3,00,000/- OR both |
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| Section 449: Punishment for false evidence |
If any person intentionally gives any false evidence under any matter of this Act. | Imprisonment for 3 to 7 year AND Fine of Rs. 10,00,000/- | Any person making default under the prescribed section | |
| Section 451: Punishment in case of repeated default |
If a Company or any officer commits an offence punishable either with fine or with imprisonment and where the same offence is committed for the second within a period of three years. | In Case of Company and Officer: Twice the amount of fine for such offence in addition to any imprisonment provided for that offence. |
Yes | Yes |
| Section 454: Adjudication of penalties |
If a company or any officer does not pay the penalty imposed by the adjudicating officer or the Regional Director | In case of Company: Fine, which shall not be less than Rs. 25,000/- but which may extend up to Rs. 5,00,000/- |
Any person making this default | |
| In case of Officer: Imprisonment of 6 months OR Fine, which shall not be less than Rs. 25,000/- but which may extend up to Rs. 1,00,000/- OR both |
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