Sourav Chatterjee (Management Trainee) (171 Points)
13 March 2012
Hi,
Can any friend tell me what are the consequences for not complying with the section 293(1)(a) of the Companies Act 1956? and also tell me is this offence Compoundable?
Sonam Bidasaria
(CA)
(770 Points)
Replied 19 March 2012
Thers is no specific penalty clause for the contravention of the said clause in Sec 293.
Hence, a general penalty clause Sec 629A will be applicable,a ccording to which the Company and every officer of he Compay who is in default shall be punishable with a fine which may extend to Rs. 5,000 and if the deafult is continuiong one, penalty of Rs. 500 will be levied for each day, after the first day, during which default continues.
This offence is compoundable under Sec 621A.
Note : Every offence covered by Sec 629A is compundable under Sec 621A.
CAclubindia
