Section 137, 140, 157, 159, 164, 165 of The Companies (Amendment) Act 2019

 

Amendment of section 137 of Companies Act 2013

22. In section 137 of the principal Act, in sub-section (3),- (a) for the words "punishable with fine", the words "liable to a penalty" shall be substituted; (b) for the portion beginning with the words "punishable with imprisonment", and ending with the words "five lakh rupees or with both", the words "shall be liable to a penalty of one lakh 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 five lakh rupees" shall be substituted.

 

 

 

Amendment of section 140 of Companies Act 2013

23. In section 140 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:- "(3) If the auditor does not comply with the provisions of sub-section (2), he or it shall be liable to a penalty of fifty thousand rupees or an amount equal to the remuneration of the auditor, whichever is less, 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.".

 

Amendment of section 157 of Companies Act 2013

24. In section 157 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:- "(2) If any company fails to furnish the Director Identification Number under sub-section (1), such company 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 one lakh rupees, and every officer of the company who is in default shall be liable to a penalty of not less than 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 one lakh rupees.".

 

Substitution of new section for section 159. Penalty for default of certain provisions

25. For section 159 of the principal Act, the following section shall be substituted, namely:- "159. If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.".

Amendment of section 164 of Companies Act 2013

26. In section 164 of the principal Act, in sub-section (1), after clause (h), the following clause shall be inserted, namely:- "(i) he has not complied with the provisions of sub-section (1) of section 165.".

 

Amendment of section 165 of Companies Act 2013

27. In section 165 of the principal Act, in sub-section (6), for the portion beginning with the words "punishable with fine" and ending with the words "contravention continues", the words "liable to a penalty of five thousand rupees for each day after the first during which such contravention continues" shall be substituted.