Guys,
The company has declared dividend. The company has not transfered the amount to a separate bank account as required under section 123(4) of the companies act 2013.
Subsequently the dividend has been paid to the shareholders from the company's bank account.
What is the penalty for non-compliance of Section 123(4)
Thanks.
Company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees and where the contravention is continuing one with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues.
| Originally posted by : Venkateswar Reddy | ||
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Company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees and where the contravention is continuing one with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues. |  |
Please mention the section....
Thanks Benkatesh. It is Section 450 (Residual Section- General Penalty)
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