Question

State the following statements is True or False:
The Registrar of Companies can impose fine or penalty on companies when irregularities are noticed.

• A. True
• B. False

Answer 1

The correct option is A True

Committee is of the view that in tune with legal developments in the country, guided by recent pronouncements of the Apex court it would be appropriate for the law to provide a regime of penalties for companies. These would be monetary in nature since it would not be feasible to imprison an artificial person such as a company. Such penalties should also be relatable to the size of the company in addition to the nature of the offence.