Overview
We are at VGC help you to compound your offences to make your company a well compliance Company.
As per Black's Law Dictionary, "Compound" means
- To settle (a matter) by a money payment, in lieu of other liability;
- To agree for consideration not to prosecute (a crime);
As per Section 3 (38) of General Clauses Act,1897, "Offence" shall mean
- Any act or omission made punishable by any law for the time being in force
As per Section 2(n) of the Criminal Procedure Code 'Offence' means
- Any act or omission made punishable by any law for the time being in force and includes any act in respect of which a complaint may be made under section 20 of the Cattle-trespass Act, 1871
Contact us today at info@vgccs.in to learn more about our services and how we can help your business grow.
The “compounding†refers to a settlement mechanism under which the party in default or the offender pays some prescribed amount of money to the competent authority in lieu of getting prosecuted.
Compounding is a golden opportunity for any defaulting entity to come forward, admit the default and make the compliance good. The defaulting party gets discharged on payment of composition fee from that particular offence. Though, compounding is the most appreciated tool for settlement of less grave defaults, it is important for the corporates to ensure that no such defaults occur and needs to monitor compliance of law on real time basis.
Offences which can be compounded under section 441 of the Act:
Types of Offences under the Companies Act, 2013
Compoundable offences
a) Offences that are punishable with "fine only"
b) Offences that are punishable with “fine or imprisonment
Further in following cases, compounding shall not be allowed:
- Offence punishable with “imprisonment onlyâ€; or
- Offence punishable with “imprisonment and fineâ€; or
- Where investigation has been initiated or is pending against the company; or
- Where similar offence has been compounded within last three years.
Jurisdiction:
- Where the maximum amount of fine which may be imposed for an offence does not exceed INR 25 Lakh, the Regional Director (“RDâ€) or any officer authorised by the Central Government has a power to compound such an offence;
- Where the maximum amount of fine which may be imposed for an offence exceeds INR 25 Lakh, the NCLT has a power to compound such an offence.
Persons eligible to make a compounding application:
- A company (any director of the company authorized by its board in this behalf) and/or
- Officers in default of the company who are liable for prosecution under the respective provisions for non-compliances.
Pursuant to section 2(60) of the Companies Act, 2013, a Whole-time Director (WTD) and Key Managerial Personnel (KMP) shall be the officers in default. Further, where there is no KMP, officers in default shall be those directors who are identified by the board in this respect and who also consent to act as such. If no such director has consented as such, all directors shall be officers in default.
Contact us today at info@vgccs.in to learn more about our services and how we can help your business grow.