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

Meera Industries Ltd, in default of Section 129, has no managing director or whole-time director in charge of finance, no CFO, and the Board has charged no person with compliance. Who is liable to punishment, and with what maximum fine?

All the directors are liable, because none of the named officers exists. Section 129(7) provides imprisonment up to one year, or a fine of at least fifty thousand rupees extending to five lakh rupees, or both.

  1. AAll the directors, with fine extending to five lakh rupees, or imprisonment up to one year, or bothCorrect
  2. BOnly the company secretary, with fine up to fifty thousand rupees
  3. COnly the statutory auditor, with fine up to five lakh rupees
  4. DThe company alone, with fine up to one lakh rupees and no imprisonment

Explanation

Under Section 129(7) the managing director, whole-time director in charge of finance, CFO or any person charged by the Board is liable. In the absence of all of them, all the directors are punishable with imprisonment up to one year or fine of at least fifty thousand and up to five lakh rupees, or both. The company secretary and auditor are not named.

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