Section 170, 171 and 172 of Companies Act 2013

“Members right to inspect”Under Section 171 of The Companies Act 2013

  • The register kept under section 170 (1),

(a) the register shall be open for inspection during business hours (9 AM TO 6 PM) and the members shall have a right to take extracts therefrom and copies thereof, and on a request by the members, the company provided to them free of costwithin 30 daysand

(b) the register shall also be kept open for inspection at every annual general meeting (AGM)and shall be made available to every person who’s attending the meeting (AGM).

  • If any inspection is refused, or if any copy required is not sent within 30 days from the date of receipt of such request, the Registrar shall on an application, order immediate inspection and supply of copies required by the applicant.

“Punishment” Under Section 172 of Companies Act 2013

If a company contravenes any of the provisions of Chapter XI (Section 149 to Section 171) and there is no specific penalty is provided therein,

  • the company and
  • every officer of the company

Defaulter shall be liable for a penalty with a fine of; –

  • not less than 50,000 rupees.

But in the case of continuous default

  •  the company and
  • every officer of the company

Defaulter shall be liable for a penalty with a fine of; –

  • Rs. 500 per day during the tenure failure continues
  • subject to a maximum of Rs 3 Lakhs in case of company and Rs 1 Lakh in case of officer (in default).

Exception/ Modification/ Adaptation

  • Section 171 shall not apply to Government Company in which the entire share capital is held by the Central Government (CG), or by any State Government (SG)or one or more State GovernmentsOr one or more central Government.

This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Neetu Saini

AKGVG & Associates

Leave a Reply

Your email address will not be published. Required fields are marked *