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CS Executive · Company Law and Practice · General Meetings

The company secretary of Lotus Pharma Ltd found that the minutes of a general meeting were not kept as required by Section 118, and no valid reason existed. What penalty applies on the company and on each officer in default respectively?

For default in complying with Section 118 on minutes, the company is liable to a penalty of Rs 25,000 and every officer in default to a penalty of Rs 5,000, as laid down in Section 118(11) of the Companies Act, 2013.

  1. ARs 10,000 and Rs 1,000
  2. BRs 25,000 and Rs 5,000Correct
  3. CRs 50,000 and Rs 10,000
  4. DRs 5,000 and Rs 25,000

Explanation

Section 118(11) imposes a penalty of twenty-five thousand rupees on the company and five thousand rupees on every officer in default. The reversed figures in the last option wrongly place the larger sum on the officer. Tampering with minutes is separately punishable under Section 118(12).

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