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CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation

A director of a company disobeys a direction issued by the Registrar during an inspection under section 207. Which of the following is the statutory punishment?

Disobeying a Registrar's or inspector's direction under section 207 is punishable with imprisonment up to one year and a fine of at least twenty-five thousand rupees, extendable to one lakh rupees. Both penalties apply together under the statute.

  1. AImprisonment up to six months and fine of Rs 10,000 to Rs 50,000
  2. BImprisonment up to one year and fine of not less than Rs 25,000 but up to Rs 1 lakhCorrect
  3. CFine only, of Rs 1 lakh to Rs 5 lakh
  4. DImprisonment up to three years and fine up to Rs 5 lakh

Explanation

Section 207(4)(i) prescribes imprisonment which may extend to one year and fine not less than Rs 25,000 but up to Rs 1 lakh. The three-year option relates to section 221 contravention by officers, not this offence.

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