Companies Act Section 446A — Factors for determining level of punishment

CHAPTER XXVIII SPECIAL COURTS

Commercial / Corporate

Summary

The court or the Special Court must consider a set of listed factors when it decides the amount of fine or the term of imprisonment to impose under this Act.

Under clause (a), the court must take into account the size of the company.

Under clause (b), the court must consider the nature of the business that the company carries on.

Under clause (c), the court must weigh any injury caused to public interest.

Under clause (d), the court must look at the nature of the default committed.

Under clause (e), the court must consider whether the default has been repeated.

Official Text

The court or the Special Court, while deciding the amount of fine or imprisonment under this Act, shall have due regard to the following factors, namely:—

(a) size of the company;

(b) nature of business carried on by the company;

(c) injury to public interest;

(d) nature of the default; and

(e) repetition of the default.