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Section 446B: Lesser penalties for certain companies

Companies Act, 2013 · Chapter XXVIII: Special Courts · In force

This section reduces the penalty for non-compliance with the Act for certain types of companies, including One Person Companies, small companies, start-up companies, and Producer Companies, to a maximum of half of the specified penalty or two lakh rupees for the company and one lakh rupees for an officer or other person.

Penalty

Notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.

The section, clause by clause

What the section says
In plain terms
Notwithstanding anything contained in this Act, if penalty is payable for non-compliance of any of the provisions of this Act by a One Person Company, small company, start-up company or Producer Company, or by any of its officer in default, or any other person in respect of such company, then such company, its officer in default or any other person, as the case may be, shall be liable to a penalty which shall not be more than one-half of the penalty specified in such provisions subject to a maximum of two lakh rupees in case of a company and one lakh rupees in case of an officer who is in default or any other person, as the case may be.
explanationExplanation.—For the purposes of this section,—
(a)“Producer Company” means a company as defined in clause (l) of section 378A;
(b)“start-up company” means a private company incorporated under this Act or under the Companies Act, 1956 (1 of 1956) and recognised as start-up in accordance with the notification issued by the Central Government in the Department for Promotion of Industry and Internal Trade.]
CHAPTER XXIX MISCELLANEOUS

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.

Amendment notes

This section refers to

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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.