Companies Act Section 378ZM — Penalty for contravention
CHAPTER XXI
Commercial / Corporate
Summary
Sub-section (1) covers anyone who is not a Producer Company registered under this Chapter but carries on business using a name that contains the words "Producer Company Limited". Such a person can be fined up to ten thousand rupees for every day the name is used.
Sub-section (2) covers a director or officer of a Producer Company who wilfully fails to provide information about the company's affairs when it is required by a Member or by a person duly authorised for this purpose. Such a person can face imprisonment for up to six months and a fine equal to five per cent of the company's turnover from the preceding financial year.
Sub-section (3) covers a director or officer of a Producer Company who commits either of two specific failures. Under clause (a), the failure is not handing over custody of books of account, other documents, or property in their custody to the Producer Company. Under clause (b), the failure is not convening the annual general meeting or other general meetings. For either failure, the person can be fined up to one lakh rupees, and if the default or failure continues, an additional fine of up to ten thousand rupees for every day it continues.
Official Text
(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) If a director or officer of a Producer Company—
(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
(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