Question
Consider the following statements regarding violations
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?Solution
Sections 447-467 prescribe penalties. Statement 1 is incorrect—violations can attract criminal penalties even without fraud; penalties depend on the violation's nature. Statement 2 is correct—filing failures can attract both civil fines and criminal penalties. Statement 3 is correct—various sections provide for significant penalties and imprisonment for director violations. Statement 4 is correct—companies and directors can be held separately liable as per the Act. Statements 2, 3, and 4 are correct.
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Only a few Airtel are ideas
Some ideas are not vodafone
No vodafone are JIO
Only a few JIO are BSNL
Co...
Read the given statements and conclusion carefully. Assuming the information given in the statement is true, even if it appears to be at variance with...
Statements:
All Animals are Jungles.
Only few Jungles are Trees.
Only few Trees are Forest.
No Forest is a Farm.
Conc...
Statements:Â Â Â Â Â Â
Some pigs are dogs.
Some dogs are cat.
Conclusions:
I. Some pigs are cats.        �...
Statements:
All Flowers are Roses
No Root is Stem
All Root are Roses
Conclusions:
I. All Stem are Flower
II. No Stem is Flower
Three statements are given followed by three conclusions numbered I, |I & Ill. Assuming the statements to be true, even if they seem to be at variance w...
Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at varianc...
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