Section 167, 172, 178, 184, 187, 188, 197 of Companies Amendment Act 2020

Amendment to Section 167

In section 167 of the principal Act, in sub-section (2),-

(a) the words "with imprisonment for a term which may extend to one year or" shall be omitted;

(b) for the words "five lakh rupees, or with both", the words "five lakh rupees"
shall be substituted.

Amendment to Section 172

For section 172 of the principal Act, the following section shall be substituted,
namely:-

"172. If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default."

Amendment to Section 178 of Companies Act 2013

In section 178 of the principal Act, in sub-section (8), for the words "punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both", the words "liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of one lakh rupees" shall be substituted.

Amendment to Section 184 of Companies Act 2013

In section 184 of the principal Act, in sub-section (4), for the words "punishable with imprisonment for a term which may extend to one year or with fine which may extend to one lakh rupees, or with both", the words "liable to a penalty of one lakh rupees" shall be substituted.

Amendment to Section 187 of Companies Act 2013

In section 187 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:-

"(4) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees."

Amendment to Section 188 of Companies Act 2013

In section 188 of the principal Act, in sub-section (5),-

(a) in clause (i), for the words "punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both", the words "liable to a penalty of twenty-five lakh rupees" shall be substituted;

(b) in clause (ii), for the words "punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees", the words "liable to a penalty of five lakh rupees" shall be substituted.

Amendment to Section 197 of Companies Act 2013

In section 197 of the principal Act, in sub-section (3), after the words "whole-time director or manager,", the words "or any other non-executive director, including an independent director" shall be inserted.