Section 66, 68, 71, 86, 88, 89, 90 of Companies Amendment Act 2020

 

Amendment to Section 66

In section 66 of the principal Act, sub-section (11) shall be omitted

 

Amendment to Section 68

In section 68 of the principal Act, in sub-section (11),-

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

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

 

 

Amendment to Section 71 of Companies Act 2013

In section 71 of the principal Act, sub-section (11) shall be omitted.

 

Amendment to Section 86 of Companies Act 2013

In section 86 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:-

"(1) If any company is in default in complying with any of the provisions of this Chapter, 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 88 of Companies Act 2013

In section 88 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:-

"(5) If a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) or sub-section (2), the company shall be liable to a penalty of three 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 89 of Companies Act 2013

In section 89 of the principal Act,-

(a) for sub-section (5), the following sub-section shall be substituted, namely:-

"(5) If any person fails to make a declaration as required under sub-section (1) or sub-section (2) or sub-section (3), he shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.";

(b) for sub-section (7), the following sub-section shall be substituted, namely:-

"(7) If a company, required to file a return under sub-section (6), fails to do so before the expiry of the time specified therein, the company and every officer of the company who is in default shall be liable to a penalty of one thousand rupees for each day during which such failure continues, subject to a maximum of five lakh rupees in the case of a company and two lakh rupees in case of an officer who is in default.";

(c) after sub-section (10), the following sub-section shall be inserted, namely:-

"(11) The Central Government may, by notification, exempt any class or classes of persons from complying with any of the requirements of this section, except sub-section (10), if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.".

 

Amendment to Section 90 of Companies Act 2013

(a) for sub-section (10), the following sub-section shall be substituted, namely:-

"(10) If any person fails to make a declaration as required under sub-section (1), he shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.";

(b) for sub-section (11), the following sub-section shall be substituted, namely:-

"(11) If a company, required to maintain register under sub-section (2) and file the information under sub-section (4) or required to take necessary steps under sub-section (4A), fails to do so or denies inspection as provided therein, the company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day, after the first during which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day, after the first during which such failure continues, subject to a maximum of one lakh rupees.".