Section 242, 243, 248, 272, 398, 441 of The Companies (Amendment) Act 2019

 

Amendment of section 242 of Companies Act 2013

34. In section 242 of the principal Act, after sub-section (4), the following sub-section shall be inserted, namely:- "(4A) At the conclusion of the hearing of the case in respect of sub-section (3) of section 241, the Tribunal shall record its decision stating therein specifically as to whether or not the respondent 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."

 

 

 

Amendment of section 243 of Companies Act 2013

35. In section 243 of the principal Act,- (a) after sub-section (1), the following sub-sections shall be inserted, namely:- "(1A) The person who is not a fit and proper person pursuant to sub-section (4A) of section 242 shall not hold the office of a director or any other office connected with the conduct and management of the affairs of any company for a period of five years from the date of the said decision: Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold any such office before the expiry of the said period of five years. (1B) Notwithstanding anything contained in any other provision of this Act, or any other law for the time being in force, or any contract, memorandum or articles, on the removal of a person from the office of a director or any other office connected with the conduct and management of the affairs of the company, that person shall not be entitled to, or be paid, any compensation for the loss or termination of office."; (b) in sub-section (2), after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.

 

Amendment of section 248 of Companies Act 2013

36. In section 248 of the principal Act, in sub-section (1),- (a) in clause (c), for the word and figures "section 455,", the words and figures "section 455; or" shall be substituted; (b) after clause (c) and before the long line, the following clauses shall be inserted, namely:- "(d) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A; or (e) the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.".

 

Amendment of section 272 of Companies Act 2013

37. In section 272 of the principal Act, in sub-section (3), for the words, brackets and letter "or clause (e) of that sub-section", the words "of that section" shall be substituted.

 

Amendment of section 398 of Companies Act 2013

38. In section 398 of the principal Act, in sub-section (1), in clause (f), the word "prospectus," shall be omitted

 

Amendment of section 441 of Companies Act 2013

39. In section 441 of the principal Act,- (a) in sub-section (1), in clause (b), for the words "does not exceed five lakh rupees", the words "does not exceed twenty-five lakh rupees" shall be substituted; (b) for sub-section (6), the following sub-section shall be substituted, namely:- "(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence which is punishable under this Act with imprisonment only or with imprisonment and also with fine shall not be compoundable.".