CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures
Rajvanshi Textiles Ltd, a public company that is not a small company, failed to attach the Board's report to its financial statements laid before the annual general meeting. Under Section 134(8), what is the penalty on the company?
The company is liable to a penalty of Rs 3,00,000 under Section 134(8). The sub-section fixes this amount for the company in default, while each officer in default pays Rs 50,000. Since the company is not a small company, no reduction applies.
- ARs 50,000
- BRs 1,00,000
- CRs 3,00,000Correct
- DRs 5,00,000
Explanation
Section 134(8) provides that a company in default is liable to a penalty of three lakh rupees. Rs 50,000 is the penalty on each officer in default, not on the company. The company here is not a small company, so no lesser penalty applies.
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