What is Adjudication of penalties? What is Dormant company? Section 454 and 455 of Indian Companies Act 2013

Adjudication of penalties and Dormant company are defined under Section 454  and 455 of Indian Companies Act 2013. Provisions under these Sections are:

Section 454 of Indian Companies Act 2013 "Adjudication of penalties"

(1) The Central Government may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of this Act in the manner as may be prescribed.

(2) The Central Government shall while appointing adjudicating officers, specify their jurisdiction in the order under sub-section (1).

(3) The adjudicating officer may, by an order impose the penalty on the company and the officer who is in default stating any non-compliance or default under the relevant provision of the Act.

 

(4) The adjudicating officer shall, before imposing any penalty, give a reasonable opportunity of being heard to such company and the officer who is in default.

(5) Any person aggrieved by an order made by the adjudicating officer under sub-section (3) may prefer an appeal to the Regional Director having jurisdiction in the matter.

(6) Every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed.

(7) The Regional Director may, after giving the parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, modifying or setting aside the order appealed against.

(8) (i) Where company does not pay the penalty imposed by the adjudicating officer or the Regional Director within a period of ninety days from the date of the receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees.

(ii) Where an officer of a company who is in default does not pay the penalty within a period of ninety days from the date of the receipt of the copy of the order, such officer shall be punishable with imprisonment which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

Section 455 of Indian Companies Act 2013 "Dormant company”

(1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.

Explanation.—For the purposes of this section, -

(i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;

(ii) “significant accounting transaction” means any transaction other than -

(a) payment of fees by a company to the Registrar;

(b) payments made by it to fulfill the requirements of this Act or any other law;

(c) allotment of shares to fulfill the requirements of this Act; and

(d) payments for maintenance of its office and records.

(2) The Registrar on consideration of the application shall allow the status of a dormant company to the applicant and issue a certificate in such form as may be prescribed to that effect.

(3) The Registrar shall maintain a register of dormant companies in such form as may be prescribed.

(4) In case of a company which has not filed financial statements or annual returns for two financial years consecutively, the Registrar shall issue a notice to that company and enter the name of such company in the register maintained for dormant companies.

(5) A dormant company shall have such minimum number of directors, file such documents and pay such annual fee as may be prescribed to the Registrar to retain its dormant status in the register and may become an active company on an application made in this behalf accompanied by such documents and fee as may be prescribed.

(6) The Registrar shall strike off the name of a dormant company from the register of dormant companies, which has failed to comply with the requirements of this section.

What is Compounding of certain offences? What is Mediation and Conciliation Panel? Section 441 and 442 of Indian Companies Act 2013

What is Power of Central Government to appoint company prosecutors? What is appeal against acquittal? What is Compensation for accusation without reasonable cause? Section 443, 444 and 445 of Indian Companies Act 2013

What is Application of fines? What is Punishment for fraud? What is Punishment for false evidence? Section 446, 447 and 448 of Indian Companies Act 2013

What is Punishment for false evidence? What is Punishment where no specific penalty or punishment is provided? What is Punishment in case of repeated default? Section 449, 450 and 451 of Indian Companies Act 2013

What is Punishment for wrongful withholding of property? What is Punishment for improper use of “Limited” or “Private Limited”? Section 452 and 453 of Indian Companies Act 2013

What is Adjudication of penalties? What is Dormant company? Section 454 and 455 of Indian Companies Act 2013

What is Protection of action taken in good faith? What is Nondisclosure of information in certain cases? What is Delegation by Central Government of its powers and functions? Section 456, 457 and 458 of Indian Companies Act 2013

What is Powers of Central Government or Tribunal to accord approval, etc., subject to conditions and to prescribe fees on applications? What is Condonation of delay in certain cases? Section 459 and 460 of Indian Companies Act 2013

 

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