Amended and updated notes on section 446B 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 Lesser penalties for certain companies.
Chapter XXVIII (Sections 435 to 446B) of the Companies Act 2013 (CA 2013) deals with the provisions related to special courts. Section 446B of CA 2013 provides for Lesser penalties for certain companies.
Recently, we have discussed in detail section 446A (Factors for determining level of punishment) of CA 2013. Today, we learn the provisions of section 446B of the Companies Act 2013. The amended provision of section 446B is effective for the financial year 2020-21 onwards.
In this article, you will learn detail of the provisions of section 446B of the Companies Act 2013 Bare Act read with the relevant Company Rules 2021 as provided by Ministry of Corporate Affairs (MCA), Government of India.
| 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. | XXVIII |
| Chapter Name | Special Courts |
| Section No. | 446B |
| Section Name | Lesser penalties for certain companies |
| Monthly Updated Edition | Company Law PDF |
Section 446B: Lesser penalties for certain companies
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.
Explanation: 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 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
[Section 446B has been substituted w.e.f. 22.01.2021 by the Companies (Amendment) Act, 2020 vide MCA Notification S.O. 325(E) dated the 22nd January, 2021.]