Skip to content

CS Professional · Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

Gamma Foods Ltd's offence has been compounded by the Regional Director before any prosecution was filed. What must the company do next, and what is the effect?

The company must give intimation to the Registrar within seven days of the compounding. Because compounding happened before prosecution, no prosecution can later be instituted for that offence by the Registrar, a shareholder or an authorised person.

  1. AInform the Registrar within seven days; no prosecution can then be instituted for that offenceCorrect
  2. BInform the Registrar within thirty days; prosecution may still be filed by a shareholder
  3. CInform the Tribunal within seven days; the Registrar may still prosecute
  4. DTake no step, since the order is self-executing and no intimation is required

Explanation

Section 441(3)(b) requires the company to intimate the Registrar within seven days of compounding. Under 441(3)(c), where compounding occurs before prosecution, no prosecution can be instituted by the Registrar, any shareholder or any person authorised by the Central Government. The thirty-day period is invented.

Did you get it right without looking?

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

Practise Applications, Petitions and Appeals under Companies Act, 2013Free diagnostic mock

More Applications, Petitions and Appeals under Companies Act, 2013 questions