Section 446 of Companies Act, 2013 – Application of fines

  • Updated Till : November 11, 2018

SECTION 446. APPLICATION OF FINES

[Effective from 12th September, 2013]

The court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or in or towards the payment of a reward to the person on whose information the proceedings were instituted.

List of offences compoundable only after obtaining
permission of the Special Court

Sections of

2013 Act

Nature of offence
8(11) Contravention of provision relating to formation of companies with charitable objects, etc. [corresponds to the provisions of Section 25 of the 1956 Act]
26(9) Contravention of provisions relating to matters to be stated in prospectus [corresponds to provisions of Sections 55-60 of the 1956 Act]
40(5) Contravention of provisions relating to securities to be dealt with in stock exchanges [corresponds to provisions of Section 73 and Section 76 of the 1956 Act]
48(5) Contravention of provisions relating to variation of shareholder’s rights [corresponds to provisions of Section 106 and Section 107 of the 1956 Act]
53(3) Contravention of provisions relating to prohibition on issues of share at discount [corresponds to provisions of Section 79 of the 1956 Act]
59(5) Contravention of provisions relating to rectification of register of members [corresponds to provisions of Section 111A of the 1956 Act]
68(11) Contravention of provisions relating to power of company to purchase its own securities [corresponds to provisions of Section 77A of the 1956 Act]
71(11) Contravention of provisions relating to debentures [corresponds to provisions of Section 117C(5) of the 1956 Act]
74(3) Contravention of provisions relating to repayment of deposits, etc., accepted before commencement of this Act (corresponds to provisions of s. 58A of the 1956 Act)
76A(6) Contravention of provisions relating to prohibition on acceptance of deposits from public and acceptance of deposits from Public (New section inserted by the Companies Amendment Act, 2015).
86 Contravention of provisions relating to registration of charges [corresponds to provisions of Section 142 of the 1956 Act]
92(5) Contravention of provisions relating to annual return. [corresponds to provisions of Section 162 of the 1956 Act]
128(6) Contravention of provisions relating to books of account, etc., to be kept by company. [corresponds to provisions of Section 209 and Section 214 of the 1956 Act]
129(7) Contravention of provisions relating to financial statement [corresponds to provisions of Sections 210 -212 of the 1956 Act]
134(8) Contravention of provisions relating to financial statement, Board’s report, etc. [corresponds to provisions of Sections 215-217 of the 1956 Act]
137(3) Contravention of provisions relating to copy of financial statement to be filed with Registrar. [corresponds to provisions of Section 220 of the 1956 Act]
147(1) Contravention of provisions relating to audit and auditors i.e. s. 139-146 [corresponds to provisions of Section 232 and Section 233 of the 1956 Act]
159 Contravention of provisions relating to the provisions of Section 152, Section 155 and Section 156 [corresponds to provisions of Section 266G of the 1956 Act]
167(2) Contravention of provisions relating to vacation of office of director [corresponds to provisions of Section 283 of the 1956 Act]
178(8) Contravention of provisions relating to Nomination and Remuneration Committee and Stakeholders Relationship Committee
184(4) Contravention of provisions relating to disclosure of interest by director [corresponds to provisions of Section 299 and Section 305 of the 1956 Act]
185(2) Contravention of provisions relating to loan to directors, etc [corresponds to provisions of Section 295 and Section 296 of the 1956 Act
187(4) Contravention of provisions relating to investments of company to be held in its own name

[corresponds to provisions of Section 49 of the 1956 Act]

188(5)(i) Contravention of provisions relating to

[corresponds to provisions of Sections 294, 297 and Section 314 of the 1956 Act]

194(2) Contravention of provisions relating to prohibition on forward dealings in securities of company by director or key managerial personnel.
195(2) Contravention of provisions relating to prohibition on insider trading of securities
221(2) Contravention of provisions relating to freezing of assets of company on inquiry and investigation
222(2) Contravention of provisions relating to imposition of restrictions upon securities

[corresponds to provisions of Section 250 of the 1956 Act]

232(8) Contravention of provisions relating to merger and amalgamation of companies

[corresponds to provisions of Section 394 of the 1956 Act]

242(8) Contravention of provisions relating to powers of Tribunal

[corresponds to provisions of Section 407 of the 1956 Act]

243(2) Contravention of provisions relating to termination or modification of certain agreements

[corresponds to provisions of Section 407 of the 1956 Act]

274(4) Contravention of provisions relating to directions for filing statement of affairs [corresponds to provisions of Section 439A and Section 446A of the 1956 Act]
284(2) Contravention of provisions relating to promoters, directors, etc., to cooperate with Company Liquidator
305(4) Contravention of provisions relating to declaration of solvency in case of proposal to wind up voluntarily [corresponds to provisions of Section 488 of the 1956 Act]
306(5) Contravention of provisions relating to meeting of creditors [corresponds to provisions of Section 500 and Section 501 of the 1956 Act]
347(4) Contravention of provisions relating to disposal of books and papers of company [corresponds to provisions of Section 550 of the 1956 Act]
348(7) Contravention of provisions relating to information as to pending liquidations [corresponds to provisions of Section 551 of the 1956 Act]
391/392 Contravention of provisions relating to section 391 [corresponds to provisions of Section 598 and Sections 606-607 of the 1956 Act]
405(4) Contravention of provisions relating to power of Central Government to direct companies to furnish information or statistics [corresponds to provisions of Section 615 of the 1956 Act]
441(5) Contravention of provisions relating to compounding of certain offences [corresponds to provisions of Section 621A of the 1956 Act]
454(8) Contravention of provisions relating to adjudication of penalties

 

 

SECTION 446 A. FACTORS FOR DETERMINING LEVEL OF PUNISHMENT

[Effective from 9th February, 2018]

The court or the Special Court, while deciding the amount of fine or imprisonment under this Act, shall have due regard to the following factors, namely:—

(a) size of the company;

(b) nature of business carried on by the company;

(c) injury to public interest;

(d) nature of the default; and

(e) repetition of the default.

SECTION 446 B. LESSER PENALTIES FOR ONE PERSON COMPANIES OR SMALL COMPANIES.

[Effective from 9th February, 2018]

Notwithstanding anything contained in this Act, if a One Person Company or a small company fails to comply with the provisions of sub-section (5) of section 92, sub-section (2) of section 117 or sub-section (3) of section 137, such company and officer in default of such company shall be punishable with fine or imprisonment or fine and imprisonment, as the case may be, which shall not be more than one-half of the fine or imprisonment or fine and imprisonment, as the case may be, of the minimum or maximum fine or imprisonment or fine and imprisonment, as the case may be, specified in such sections.

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