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Penalty under Section 162 of Companies Act, 1956
Section 162 of the Companies Act, 1956 says "If a company fails to comply with any of the provisions contained in section 159, 160 or 161, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to 1[five hundred rupees] for every day during which the default continues".
My question is if the company defaulted for 26 years how much days fine the company have to pay and how much amount?
Replies (1)
Dear Toshi,
The penalty stated here mentions "May extend to", so whn a company fails to comply with ne of the section stated above, they hv to approach CLB for compounding and accoridingly the penalty wud be stated. So it cn be 100 rs per day, 200 rs pd .......maximum 500 rs, pd , accordingly as the CLB thinks appropriate. Bt it cnt go beyond 500rs. per day.
Hope its clear nw.
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