Amended and updated notes on section 378ZM of the Companies Act 2013 as amended by the Companies (Amendment) Act, 2020 and Company Rules made there under. Detail discussion on provisions and rules related to Penalty for contravention.
Chapter XXIA PART-VIII (Section 378ZM) of the Companies Act 2013 (CA 2013) deals with the provisions related to penalties. Section 378ZM of CA 2013 provides for Penalty for contravention.
Recently, we have discussed in detail section 378ZL (Investment in other companies, formation of subsidiaries) of CA 2013. Today, we learn the provisions of section 378ZM of the Companies Act 2013.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2020 (29 of 2020), the Central Government appoints the 11th February, 2021 as the date on which the provisions of section 52 of the Companies (Amendment) Act, 2020 shall come into force.
Accordingly, the provisions of section 378ZM are effective from 11th February, 2021. You may refer Notification No. S.O. 644(E) dated 11-02-2021. In this article, you will learn detail of the provisions of section 378ZM the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XXIA (PART-VIII) |
| Chapter Name | Penalties |
| Section No. | 378ZM |
| Section Name | Penalty for contravention |
| Monthly Updated Edition | Company Law PDF |
Section 378ZM: Penalty for contravention
Section 378ZM(1) of Companies Act
If any person, other than a Producer Company registered under this Chapter, carries on business under any name which contains the words “Producer Company Limited”, he shall be punishable with fine which may extend to ten thousand rupees for every day during which such name has been used by him.
Section 378ZM(2) of Companies Act
If a director or an officer of a Producer Company, who wilfully fails to furnish any information relating to the affairs of the Producer Company required by a Member or a person duly authorised in this behalf, he shall be liable to imprisonment for a term which may extend to six months and with fine equivalent to five per cent. of the turnover of that Company during the preceding financial year.
Section 378ZM(3) of Companies Act
If a director or officer of a Producer Company—
- (a) fails to hand over the custody of books of account and other documents or property in his custody to the Producer Company of which he is a director or officer; or
- (b) fails to convene annual general meeting or other general meetings, he shall be punishable with fine which may extend to one lakh rupees, and in the case of a continuing default or failure, with an additional fine which may extend to ten thousand rupees for every day during which such default or failure continues