Section 446B of the Companies Act, 2013: Lesser penalties for certain companies

The Companies Act, 2013

Chapter– XXVIII Special Courts

1[2[Section 446B: Lesser penalties for certain companies.

446B. Notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.

Explanation.—For the purposes of this section,—

(a) “Producer Company” means a company as defined in clause (l) of section 378A;

(b) “start-up company” means a private company incorporated under this Act or under the Companies Act, 1956 and recognised as start-up in accordance with the notification issued by the Central Government in the Department for Promotion of Industry and Internal Trade.]]


Reference

1. Inserted by the Companies (Amendment) Act, 2017, w.e.f. 09.02.2018[S.O. 630(E) dated 09.02.2018].

2. Substituted by the Companies (Amendment) Act, 2020, w.e.f. 22.01.2021[S.O. 325(E) dated 22.01.2021], for the Section:

“[Section 446B: Lesser penalties for One Person Companies or small companies.

446B. Notwithstanding anything contained in this Act, if a One Person Company or a small company fails to comply with the provisions of sub-section (5) of section 92, sub-section (2) of section 117 or sub-section (3) of section 137, such company and officer in default of such company shall be *[liable to a penalty which shall not be more than one-half of the penalty specified in such sections].

*Substituted by the Companies (Amendment) Act, 2019, w.e.f. 02.11.2018, for the words “punishable with fine or imprisonment or fine and imprisonment, as the case may be, which shall not be more than one-half of the fine or imprisonment or fine and imprisonment, as the case may be, of the minimum or maximum fine or imprisonment or fine and imprisonment, as the case may be, specified in such sections”.“.

 

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