Dear frnds,
Please tell me what are the consequences of violating section 212. As per section 212(9), there is a penalty of Rs.ten thousand. Bt how will the CLB proceed for that ?
Thanx in adv.
Regards,
Shridhi Jain
Shridhi Jain (Company Secretary) (1678 Points)
07 December 2010Dear frnds,
Please tell me what are the consequences of violating section 212. As per section 212(9), there is a penalty of Rs.ten thousand. Bt how will the CLB proceed for that ?
Thanx in adv.
Regards,
Shridhi Jain
ankit jain
(CS trainee)
(152 Points)
Replied 08 December 2010
Dear Shridhi,
Firstly you have to make an application which is to be made to ROC who will forward it to the CLB. But you have to adress the application to the CLB. Then after that all depends upon your liasioning with the CLB members. CLB does not react harshly in such matter bcoz mostly person proves that default was not wilfully so, only penalty will be charged no imprisonment can be made until it is proved that the default was made wilfully.
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 09 December 2010
The penalty for violation of Section 212 is fine of Rs.10,000/- or imprisonment upto a term of 6 months.
The penalty will be imposed once the violation comes to their knowledge.
However before that, you can suo moto make an application to CG (before instituting prosecution by them) under Section 621A for compounding of offence. Your suo moto action will be taken as a positive step and may attract lesser penalty.
Syam kamal
(Company Secretary)
(156 Points)
Replied 09 December 2010
| Originally posted by : Jayashree S Iyer | ||
 |
The penalty for violation of Section 212 is fine of Rs.10,000/- or imprisonment upto a term of 6 months. The penalty will be imposed once the violation comes to their knowledge. However before that, you can suo moto make an application to CG (before instituting prosecution by them) under Section 621A for compounding of offence. Your suo moto action will be taken as a positive step and may attract lesser penalty. |
 |
Absolutely right
Once the offence is being compounded, the amount you pay will not be considered as penalty instead will be regarded as compounding fees which is a deductible expense under the Income Tax Act.
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