COMPANIES (AMENDMENT) ACT, 2020
Section 124 (7) of the Companies Act, 2013 provides penalty if a company fails to comply with the provisions of section 124 (unpaid dividend). The original penalty on the company is - penalty which shall not be less than Rs.5 lakhs but which may extend to Rs.25 lakhs. Officer-in-default shall be imposed penalty not less than Rs.1 lakh but which may extend to Rs.5 lakhs.
Section 23 of Companies (Amendment) Act, 2020 caused an amendment to section 127(7) and substituted a new provision to section 127(7). The penalty is reduced by amendment. The new penalty is Rs.1 lakh. If the offence is a continuous one, a further penalty of Rs.100/- for each day subject to a maximum of Rs.10 lakhs. The officer in default is liable to a fine of Rs.25,000/-; if the offence is a continuous one, a further penalty of Rs.100/- for each day subject to a maximum of Rs.2 lakhs.
Section 23 which amends section 124(7) of the Companies Act came into effect from 24.03.2021.
Section 45 of Companies (Amendment) Act, 2020 substitutes the penalty imposed under section 247 for the Registered Valuer contravening the provisions of section 247 and the rules made there under. The penalty imposed on registered valuer is not less than Rs.25,000/- but may be extended to Rs.1 lakhs.
The amendment reduces the penalty. The new penalty amount is Rs.50,000/-
Section 45 which amends section 247(3) of the Companies Act came into effect from 24.03.2021.
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