Skip to content

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

The Regional Director compounded an offence of Sunrise Pharma Ltd on 5 June before any prosecution was instituted. Which statement correctly states the follow-up requirement and effect under section 441(3)?

The company must intimate the Registrar within seven days from the date of compounding, and because compounding occurred before any prosecution, no prosecution can be instituted for that offence by the Registrar, a shareholder or a person authorised by the Central Government.

  1. AThe company must intimate the Registrar within seven days of compounding, and no prosecution can then be instituted for that offenceCorrect
  2. BThe Registrar must intimate the company within thirty days, and prosecution may still follow
  3. CNo intimation is needed, and shareholders may still prosecute
  4. DThe company must intimate the Tribunal within fourteen days, after which the court discharges it

Explanation

Section 441(3)(b) requires the company to give intimation to the Registrar within seven days from the date of compounding. Under section 441(3)(c), where compounding precedes prosecution, no prosecution may be instituted by the Registrar, any shareholder or any person authorised by the Central Government. Discharge by the court applies only if compounding follows prosecution.

Did you get it right without looking?

One question tells you little. A timed set on Non-Compliances, Penalties and Adjudications shows your real accuracy, how long you take and where you lose marks.

Practise Non-Compliances, Penalties and AdjudicationsFree diagnostic mock

More Non-Compliances, Penalties and Adjudications questions