CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures
Kaveri Foods Ltd defaulted under Section 134. The company secretary, the CFO and two directors were officers in default. Applying Section 134(8) as written, what penalty falls on each officer in default?
Each officer in default is liable to a penalty of Rs 50,000 under Section 134(8). The amount applies separately to every officer in default, whereas the company itself bears a separate penalty of Rs 3,00,000.
- ARs 25,000
- BRs 50,000Correct
- CRs 1,00,000
- DRs 3,00,000
Explanation
Section 134(8) imposes a penalty of fifty thousand rupees on every officer of the company who is in default. The penalty is per officer, not shared. Rs 3,00,000 is the company's penalty.
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