Question

Consider the following statements regarding violations

Q: Answer-Consider the following statements regarding violations and penalties under the Companies Act, 2013:...

Sections 447-467 prescribe penalties. Statement 1 is incorrectviolations can attract criminal penalties even without fraud penalties depend on the violations nature. Statement 2 is correctfiling failures can attract both civil fines and criminal penalties. Statement 3 is correctvarious sections provide for significant penalties and imprisonment for director violations. Statement 4 is correctcompanies and directors can be held separately liable as per the Act. Statements 2, 3, and 4 are correct.

and penalties under the Companies Act, 2013: Statement 1: Violation of director duties under Section 166 attracts criminal penalties only if fraud is involved. Statement 2: Failure to file financial statements and annual returns can result in both civil and criminal penalties. Statement 3: A director who causes the company to default in performing statutory duties can be held liable up to Rs. 5 lakhs or imprisonment up to 5 years. Statement 4: The company can be held liable separately from its directors for violations of the Act. Which statements are correct?

A Statements 1 and 2 only

B Statements 2, 3, and 4 only

C Statements 1, 2, and 3 only

D Statements 2 and 4 only

E All statements are correct

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