Posted On 12 April 2012 at 16:41
This is regarding the 2 below-mentioned compounding of offence application under Companies Act, 1956:
1. Under section – 297(1) of the Companies Act, 1956, which is to be dealt in Regional Director’s office.
2. Under section - 211 of the Companies Act, 1956 read Accounting Standard – 18, which is to be dealt in Company Law Board.
Now, does the Compounding Application under section – 297(1) needs to be made by the Company + all Directors(including non-executive directors) + Company Secretary OR is it only to be made by Company + MD + WTD + Company Secretary?
Further, does the Compounding Application, under section - 211 of the Companies Act, 1956 read Accounting Standard – 18 needs to by the Company + all Directors (including non-executive directors) + Company Secretary OR is it only to be made by Company + Directors who have signed the Balance-sheet + Company Secretary.
Further, what is the maximum amount of Penalty under both the compounding applications can be levied/ imposed to each applicants? [Provided in both the above cases, there is no Manager u/s – 2(24) of the Act]
Kindly provide your useful comments in this regard, its very urgent.
Thanking you all in advance.
Yougesh V. Nayyar
Posted On 23 November 2012 at 17:45
The compounding application will have to be made by all the directors of the company u/s 621A of The Companies Act read with Regulation 40 of the Company Law Board Regulations 1991.
The offence u/s 211(1) is compoundable and the penalty imposed U/s 211(7)(8) is Imprisonment upto 6 months or fine upto Rs.10,000/- or both.