The Companies Act, 2013 like most other laws dealing with offences did not have any scheme to determine the level of punishment. This is always the discretionary power of a court to determine a punishment within minimum (if any) and maximum punishment provided under law. Presently, the legislature and executives of the country want to control discretionary powers of the third organ – judiciary to all possible extent. Though discretion may result in higher corruption, subordinate courts governed by precedents and do very little use of discretion. The companies Amendment Act, 2017 introduces new Sections 446A to guide the discretionary powers. Amount of fine and/or imprisonment also reduced in several cases.
Tag Archives: Fraud
Disqualification of directors certainly is a hot topic among professionals practising corporate laws. Irrespectively of popular perception, the list compiled and released by Ministry of Corporate Affairs does not confer any disqualification to any director. These directors were already disqualified. In a serious violation, many of these directors might have failed to communicate about their disqualification to companies appointing or reappointing them after the actual date of disqualification. Such failure has penal consequences. This blog post will discuss serious consequences of the failure of compliance with law and procedures after incurring disqualification by a director.
Ministry of corporate Affairs issued a notification dated 14th December 2015 and published here in the Gazette of India dated 15th December 2015 regarding amendment in the Companies (Audit and Auditors) Rules, 2014.
One might say the Companies Act, 2013 is more about dealing with corporate fraud than regulating companies. Section 447 is most talk about provision of this Act and many sections refer to this section directly.
Consequence of any investigation is report. The Report is just a milestone. We will discuss the journey ahead in this post.
Inspector’s Report (Section 223):
In inspector shall submit all interim reports, if any, and final report to the Central Government.
Every report shall be in writing or printed as per direction of the Central Government.