Skip to content

CS Professional · Drafting, Pleadings and Appearances · Documents under Companies Act, 2013

For a contravention of section 129 by Meera Foods Ltd, which has a Chief Financial Officer in office, who is liable to punishment and what is the maximum penalty?

Liability falls on the managing director, the whole-time director in charge of finance, the CFO or any person the Board charged with the duty, and on all directors only if none exists. Punishment is up to one year's imprisonment or a fine of fifty thousand to five lakh rupees, or both.

  1. AAll directors equally, with fine up to one lakh rupees only
  2. BOnly the company, with fine up to five lakh rupees and no imprisonment
  3. CThe managing director, the whole-time director in charge of finance, the CFO or any other person charged by the Board with the duty; punishable with imprisonment up to one year or fine of fifty thousand to five lakh rupees, or bothCorrect
  4. DOnly the auditor, with imprisonment up to three years

Explanation

Section 129(7) fixes liability on the managing director, whole-time director in charge of finance, CFO or any other person charged by the Board with the duty. All directors are liable only in the absence of those officers. The punishment is imprisonment up to one year or fine of not less than fifty thousand but up to five lakh rupees, or both.

Did you get it right without looking?

One question tells you little. A timed set on Documents under Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise Documents under Companies Act, 2013Free diagnostic mock

More Documents under Companies Act, 2013 questions