Companies Act, 2013 · Chapter XXIA: Producer Companies · In force
This section is for imposing penalties on individuals and companies that contravene the rules related to Producer Companies.
Penalty
(1) 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.
(2) 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.
(3)(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. PART IX AMALGAMATION, MERGER OR DIVISION
The section, clause by clause
What the section says
In plain terms
(1)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.
A person who is not a registered Producer Company and uses a name containing "Producer Company Limited" can be fined up to ten thousand rupees for every day they use that name.
(2)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.
A director or officer of a Producer Company who fails to provide required information can be imprisoned for up to six months and fined up to five per cent of the Company's previous year's turnover.
(3)If a director or officer of a Producer Company—
A director or officer of a Producer Company who fails to hand over documents or convene meetings can be fined up to one lakh rupees, and an additional ten thousand rupees for every day the default continues.
(3)(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
(3)(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. PART IX AMALGAMATION, MERGER OR DIVISION
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.