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CS Professional · Compliance Management, Audit and Due Diligence · Non-Compliances, Penalties and Adjudications

Orchid Foods Ltd is applying to compound a filing default. The Regional Director orders an employee to file the overdue document with the Registrar on payment of the prescribed fee and additional fee. The employee does not comply. What is the consequence under section 441?

The maximum fine for the offence proposed to be compounded becomes twice the amount provided in the section prescribing the punishment. Section 441(5) applies this where an officer or employee fails to obey the order to file the document under section 441(4).

  1. AThe offence becomes non-compoundable immediately
  2. BThe maximum fine for the offence proposed to be compounded becomes twice the amount provided in the corresponding sectionCorrect
  3. CThe Registrar must prosecute the Regional Director
  4. DThe compounding sum is reduced by the additional fee

Explanation

Section 441(4) lets the authority direct an officer or employee to file the document. If the order is not complied with, section 441(5) makes the maximum fine for the offence proposed to be compounded twice the amount in the corresponding punishment section. The offence does not become non-compoundable and the fee is not a reduction.

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