Companies Act Section 159 — Penalty for default of certain provisions
CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS
Commercial / Corporate
Summary
If an individual or a director of a company fails to comply with any of the provisions mentioned in sections 152, 155, or 156 of the Act, that person becomes liable to pay a penalty. The maximum penalty for such a default is fifty thousand rupees.
If the default continues over a period of time, an additional penalty applies. This further penalty can be up to five hundred rupees for each day after the first day that the default continues.
Official Text
If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.]