Section 172 of the Companies Act, 2013: Penalty

The Companies Act, 2013

Chapter-XI Appointment and Qualifications of Directors

1[Section 172: Penalty.

*172. If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.]


Reference

*Effective from 01.04.2014.

1. Substituted by the Companies (Amendment) Act, 2020, w.e.f. 21.12.2020[S.O. 4646(E) dated 21.12.2020], for the Section:

“Section 172: Punishment.

172. If a company contravenes any of the provisions of this Chapter and for which no  specific punishment is provided therein, the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees.”

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