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what is the penalty for contravention of section 186 ?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 4 years ago

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Picsjoin 2017224123730582 Archana answered almost 4 years ago

Hie Uma, **Penalty for contravention of Section 186. :-** - Lender Company: Fine Rs. 5 lakhs to Rs. 25 lakhs - Officer: Director or other person -Imprisonment upto 2 years or fine Rs. 5 lakhs to Rs. 25 Lakhs, or both.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pushkala Santhanam answered almost 4 years ago

Section 186 of the Companies Act, 2013 contains provisions relating to Loans and Investments by a company. If a company contravenes the provisions of Section 186, the Company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees. Every officer of the company who is in default shall be punishable - (a) with imprisonment for a term which may extend to two years and (b) with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 4 years ago

Penalty for contravention of section 186: For Company: Every Company which contravenes the provisions of this Section shall be liable to a penalty which shall not be less than Rupees twenty five thousand but which may extend to Rupees five lakhs. For Officers: Every officer of the Company who is default shall be punishable with imprisonment for a term which may extend to two years and fine which shall not be less than Rupees twenty five thousand but which may extend to Rupees One lakh thanks

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