28. In section 191 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:- "(5) If a director of the company makes any default in complying with the provisions of this section, such director shall be liable to a penalty of one lakh rupees.".
29. In section 197 of the principal Act,- (a) sub-section (7) shall be omitted; (b) for sub-section (15), the following sub-section shall be substituted, namely:- "(15) If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees."
30. In section 203 of the principal Act, for sub-section (5), the following sub-section shall be substituted, namely:- "(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.".
31. In section 212 of the principal Act,- (a) in sub-section (8), for the words "If the Director, Additional Director or Assistant Director", the words "If any officer not below the rank of Assistant Director" shall be substituted; (b) in sub-section (9), for the portion beginning with the words "The Director" and ending with the word, brackets and figure "sub-section (8)", the words, brackets and figure "The officer authorised under sub-section (8) shall, immediately after arrest of such person under such sub-section" shall be substituted; (c) in sub-section (10),- (i) for the words "Judicial Magistrate", the words "Special Court or Judicial Magistrate" shall be substituted; (ii) in the proviso, for the words "Magistrate's court", the words "Special Court or Magistrate's court" shall be substituted; (d) after sub-section (14), the following sub-section shall be inserted, namely:- "(14A) Where the report under sub-section (11) or sub-section (12) states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such asset, property or cash and also for holding such director, key managerial personnel, other officer or any other person liable personally without any limitation of liability.".
32. In section 238 of the principal Act, in sub-section (3), 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 one lakh rupees" shall be substituted.
33. In section 241 of the principal Act,- (a) in sub-section (2), the following proviso shall be inserted, namely:- "Provided that the applications under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench."; (b) after sub-section (2), the following sub-sections shall be inserted, namely:- "(3) Where in the opinion of the Central Government there exist circumstances suggesting that- (a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust; (b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principles or prudent commercial practices; (c) a company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or (d) the business of a company is or has been conducted and managed by such person with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest, the Central Government may initiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company. (4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be joined as a respondent to the application. (5) Every application under sub-section (3)- (a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessary for the purposes of the inquiry; and (b) shall be signed and verified in the manner laid down in the Code of Civil Procedure, 1908, for the signature and verification of a plaint in a suit by the Central Government.".
Section 1, 2, 10a, 12 Companies Act 2019
Section 14, 26, 29, 35, 53, 64 CA 2019
Section 14, 26, 29, 35, 53, 64 CA 2019
Section 77, 86, 87, 90, 92 CA 2019
Section 102, 105, 117, 121, 132, 135
Section 137, 140, 157, 159, 164, 165
Section 191, 197, 203, 212, 238, 241