Compounding queries
arijit
(Querist) 12 April 2012
This query is : Resolved
Dear Members,
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.
Regards
Arijit
Guest
(Expert) 23 November 2012
Dear Arijit,
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.
