Section 92, 105, 117, 124, 128, 129a, 134 of Companies Amendment Act 2020

Amendment to Section 92

In section 92 of the principal Act,-

(a) in sub-section (5),-

(i) for the words "fifty thousand rupees", the words "ten thousand rupees" shall be substituted;

(ii) for the words "five lakh rupees", the words "two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default" shall be substituted;

(b) in sub-section (6), for the words "punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees", the words "liable to a penalty of two lakh rupees" shall be substituted.

Amendment to Section 105

In section 105 of the principal Act, in sub-section (5),-

(a) for the words "who knowingly issues the invitations as aforesaid or wilfully
authorises or permits their issue shall be punishable with fine which may extend to one lakh rupees", the words "who issues the invitation as aforesaid or authorises or permits their issue, shall be liable to a penalty of fifty thousand rupees" shall be substituted;

(b) in the proviso, for the word "punishable", the word "liable" shall be substituted.

Amendment to Section 117 of Companies Act 2013

In section 117 of the principal Act,-

(i) for sub-section (2), the following sub-section shall be substituted, namely:-

"(2) If any company fails to file the resolution or the agreement under sub-section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees and every officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.";

(ii) in sub-section (3), in clause (g), for the second proviso, the following proviso shall be substituted, namely:-

"Provided further that nothing contained in this clause shall apply in respect of a resolution passed to grant loans, or give guarantee or provide security in respect of loans under clause (f) of sub-section (3) of section 179 in the ordinary course of its business by,-

(a) a banking company;

(b) any class of non-banking financial company registered under Chapter IIIB of the Reserve Bank of India Act, 1934, as may be prescribed in consultation with the Reserve Bank of India;

(c) any class of housing finance company registered under the National Housing Bank Act, 1987, as may be prescribed in consultation with the National Housing Bank; and".

Amendment to Section 124 of Companies Act 2013

In section 124 of the principal Act, for sub-section (7), the following sub-section shall be substituted, namely:-

"(7) If a company fails to comply with any of the requirements of this section,
such 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 ten 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 one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees."

Amendment to Section 128 of Companies Act 2013

In section 128 of the principal Act, in sub-section (6),-

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

Insertion of New Section 129A Periodical financial results

After section 129 of the principal Act, the following section shall be inserted, namely:-

"129A. The Central Government may, require such class or classes of unlisted
companies, as may be prescribed,-

(a) to prepare the financial results of the company on such periodical basis and in such form as may be prescribed;

(b) to obtain approval of the Board of Directors and complete audit or limited review of such periodical financial results in such manner as may be prescribed; and

(c) file a copy with the Registrar within a period of thirty days of completion
of the relevant period with such fees as may be prescribed."

Amendment to Section 134 of Companies Act 2013

In section 134 of the principal Act, for sub-section (8), the following sub-section shall be substituted, namely:-

"(8) If a company is in default in complying with the provisions of this section, 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."