Penalty U/S 279

This query is : Resolved

Guest

Guest (Querist)

23 June 2010 Dear Sir,

Please clarify that penalty u/s 279 is applicable in case of more than 20 companies or 15 companies.
As per section 279 penalty is for those companies after first twenty. whereas as per section 275 max no of directorship is 15.

Please clarify.

With Warm Regards.

Kunal Agrawal

Ankur Garg

Ankur Garg (Expert)
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24 June 2010 Please check updated section 279.

15 companies are mentioned in section 279 and the penalty for violation of section 275 is Rs. 50000.

Regards

Guest

Guest (Querist)

25 June 2010 I'm reproducing section 279 hereunder...

279. Penalty.—Any person who holds office, or acts, as a director of more than fifteen companies in contravention of the foregoing provisions shall be punishable with fine which may extend to fifty thousand rupees in respect of each of those companies after the first twenty.

please consider last word.

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CS Richa Sharma

CS Richa Sharma (Expert)
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28 June 2010 The last word 'twenty' is 'fifteen' which is substituted by Companies (Amendment) Act, 2000, w.e.f. 13-12-2000.
(See the Amendment or the Bare Act to remove ur confusion).

Guest

Guest (Querist)

29 June 2010 I have copied section 279 from Bharat's Corporate Laws 2008 edition. In bare act also the word twenty is written.

Ankur Garg

Ankur Garg (Expert)
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01 July 2010 Please find below correct section 275:

275. No person to be a director of more than fifteen companies

275. No person to be a director of more than 1[fifteen companies] After the commencement of this Act, no person shall, save as otherwise provided in section 276, hold office at the same time as director in more than 1[fifteen companies].

Also find the link below:

http://www.vakilno1.com/bareacts/companiesact/s275.htm