Companies Act Section 86 — Punishment for contravention

CHAPTER VI REGISTRATION OF CHARGES

Commercial / Corporate

Summary

Sub-section (1) states that if a company fails to comply with any provision in this Chapter, the company itself will have to pay a penalty of five lakh rupees. Additionally, every officer of the company who is responsible for the default will have to pay a penalty of fifty thousand rupees.

Sub-section (2) states that if a person deliberately provides false or incorrect information, or knowingly hides important information, that was required to be registered under section 77, that person will face action under section 447.

Official Text

1[ 2[(1)] If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees]. 3[

(2) If any person willfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.] 4[