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    Question

    In case a company makes a default in transferring shares to the IEPF Fund, such company shall be liable for a penalty of __________________

    A One lakh rupee Correct Answer Incorrect Answer
    B One lakh rupee, subject to a maximum of ten lakh rupees Correct Answer Incorrect Answer
    C One lakh rupee, if continuing failure, further penalty of five hundred rupees for each day, subject to a maximum of ten lakh rupees Correct Answer Incorrect Answer
    D Not be less than five lakh rupees but may extend to twenty-five lakhs rupees Correct Answer Incorrect Answer
    E Not be less than ten lakh rupees but may extend to twenty-five lakhs rupees Correct Answer Incorrect Answer

    Solution

    As per section 124 (7) of the Companies Act, 2013, if a company fails to comply with any of the requirements of this section, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of ten lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees   Snapshoot - Topic covered in Amendment Notes of SEBI Course Legal ixamBee

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