- Non-compliance with the order of the central Government/NCLT/RD/ROC.
- In case of Default of maintenance of certain records in the registered office of the company
- corporate governance norms Defaults
- Defaults involving substantial violations which may affect the going concern nature of the company.
- when there are Defaults involving contrary to the larger public interest
- involve serious implications about the stakeholder’s
- liquidation proceedings of the company Defaults.
- Defaults not specifically punishable under any provision.
- Non-disclosure of interest of persons to the company, which vitiates the records of the company
Revised-schedule III to the companies Act 2013
Non-Compoundable Offences
Companies Act, 2013 lays down punishment for fraud under Section 447.
Default in complying with the directions issued relating to rectification of name of the company
- Fine up to Rs.1,000 for each day – for company.
- 5,000 to Rs.1 lakh – for officer
Default in the issue of a prospectus
- 50,000 to Rs.3 lakh – on company
- imprisonment up to three years or with fine 50,000 rupees to 3 lakh rupees, or with both – every person who is knowingly a party to the issue of such prospectus
Committing default in regarding the variation of shareholders’ rights
- Imprisonment up to six months or fine Rs.25,000 to Rs.5 lakh or with both – officer of the company in default
Failure to cmpoly relating to transfer and transmission of securities
- Fine Rs.25,000 to Rs.5 lakh – on company
- imprisonment up to six months or with a fine of 10,000 rupees to 1 lakh rupees. – every officer who is in default
Default with the order of Tribunal relating to rectification of register of members
- Fine Rs.1 lakh to Rs.5 lakh – on company
- imprisonment up to one year or with fine 1 lakh rupees to 3 lakh rupees, or with both – every officer of the company
Failure to publish the order of tribunal relating to the confirmation of the reduction of share capital
- Fine Rs.5 lakh to Rs.25 lakh – on the company.
Default in relating to purchase by company or loans by company for the purchase of its shares
- Fine Rs. 1 lakh to Rs.25 lakh – on company
- imprisonment up to three years and with a fine of 1 lakh rupees to 25 lakh rupees – every officer of the company
Default in complying with any regulation made by the Securities and Exchange Board of India relating to buying back of securities
- Fine Rs.1 lakh to Rs.3 lakh – on company
- imprisonment up to three years or with fine 1 lakh rupees to 3 lakh rupees, or with both – every officer of the company
Default with the order of Tribunal relating to the redemption of debentures
- Imprisonment up to three years or fine Rs.2 lakh to Rs.5 lakh or with both – for officer
Default in the provision relating to Registration of Charges
- Fine Rs.1 lakh to Rs.10 lakh – on company
- imprisonment up to six months or with fine 25,000 rupees to 1 lakh rupees, or with both – every officer of the company
Default in maintaining a register of members or debenture-holders or other security holders
- fine 50,000 rupees to 3 lakh rupees and where the failure is a continuing one, with a further fine up to 1000 rupees for every day, after the first during which the failure continues – company and every officer
Default in file declaration not holding beneficial interest in any share
- Fine up to Rs.50,000 and a further fine up to Rs.1,000 for each day of default in case failure continues.
Default in file return relating to a beneficial interest in any share before the expiry of the time
- Fine Rs.500 but to Rs.1,000 – on company
- fine up to Rs.1,000 for each day – every officer who is in default
Practicing company secretary certifies the annual return otherwise than in conformity with the requirements
- Fine Rs.50,000 to Rs.5 lakh.
Default in holding a meeting of the or in complying with any directions of the Tribunal
- Fine up to Rs.1 lakh – on company
- fine up to Rs.5,000 for each day – every officer who is in default
If invitations to appoint a person as proxy
- Every officer of the company who knowingly issues or willfully authorizes or permits their issue shall be punishable with a Fine up to Rs.1 lakh.
Failure to transfer amount relating to the accumulated profits to unpaid dividend account
- Fine Rs.5 lakh to Rs.25 lakh – on company
- 1 lakh to 5 lakh – every officer of the company who is in default
Failure to keep proper books of account
- Imprisonment up to one year or fine Rs.50,000 to Rs.5 lakh or with both – for MD, WTD, CFO
Default in complying with the directions issued relating to rectification of name of the company
- Fine up to Rs.1,000 for each day – for company.
- 5,000 to Rs.1 lakh – for officer
Default in the issue of a prospectus
- 50,000 to Rs.3 lakh – on company
- imprisonment up to three years or with fine 50,000 rupees to 3 lakh rupees, or with both – every person who is knowingly a party to the issue of such prospectus
Committing default in regarding the variation of shareholders’ rights
- Imprisonment up to six months or fine Rs.25,000 to Rs.5 lakh or with both – officer of the company in default
Failure to comply relating to transfer and transmission of securities
- Fine Rs.25,000 to Rs.5 lakh – on company
- imprisonment up to six months or with a fine of 10,000 rupees to 1 lakh rupees. – every officer who is in default
Default with the order of Tribunal relating to rectification of register of members
- Fine Rs.1 lakh to Rs.5 lakh – on company
- imprisonment up to one year or with fine 1 lakh rupees to 3 lakh rupees, or with both – every officer of the company
Failure to publish the order of tribunal relating to the confirmation of the reduction of share capital
- Fine Rs.5 lakh to Rs.25 lakh – on the company.
Default in relating to purchase by company or loans by company for the purchase of its shares
- Fine Rs. 1 lakh to Rs.25 lakh – on company
- imprisonment up to three years and with a fine of 1 lakh rupees to 25 lakh rupees – every officer of the company
Default in complying with any regulation made by the Securities and Exchange Board of India relating to buying back of securities
- Fine Rs.1 lakh to Rs.3 lakh – on company
- imprisonment up to three years or with fine 1 lakh rupees to 3 lakh rupees, or with both – every officer of the company
Default with the order of Tribunal relating to the redemption of debentures
- Imprisonment up to three years or fine Rs.2 lakh to Rs.5 lakh or with both – for officer
Default in the provision relating to Registration of Charges
- Fine Rs.1 lakh to Rs.10 lakh – on company
- imprisonment up to six months or with fine 25,000 rupees to 1 lakh rupees, or with both – every officer of the company
Default in maintaining a register of members or debenture-holders or other security holders
- fine 50,000 rupees to 3 lakh rupees and where the failure is a continuing one, with a further fine up to 1000 rupees for every day, after the first during which the failure continues – company and every officer
Default in file declaration not holding beneficial interest in any share
- Fine up to Rs.50,000 and a further fine up to Rs.1,000 for each day of default in case failure continues.
Default in file return relating to a beneficial interest in any share before the expiry of the time
- Fine Rs.500 but to Rs.1,000 – on company
- fine up to Rs.1,000 for each day – every officer who is in default
practicing company secretary certifies the annual return otherwise than in conformity with the requirements
- Fine Rs.50,000 to Rs.5 lakh.
Default in holding a meeting of the or in complying with any directions of the Tribunal
- Fine up to Rs.1 lakh – on company
- fine up to Rs.5,000 for each day – every officer who is in default
If invitations to appoint a person as proxy
- Every officer of the company who knowingly issues or willfully authorizes or permits their issue shall be punishable with a Fine up to Rs.1 lakh.
Failure to transfer amount relating to the accumulated profits to unpaid dividend account
- Fine Rs.5 lakh to Rs.25 lakh – on company
- 1 lakh to 5 lakh – every officer of the company who is in default
Failure to keep proper books of account
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- Imprisonment up to one year or fine Rs.50,000 to Rs.5 lakh or with both – for MD, WTD, CFO
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