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      Question

      As per Section 165 (6) of the Companies Act 2013, if a

      person accepts an appointment as a director in contravention of sub-section (1), he shall be punishable with fine of ____ thousand rupees for each day after the first during which such violation continues subject to a maximum of ……….. lakh rupees.
      A one, five Correct Answer Incorrect Answer
      B two, two Correct Answer Incorrect Answer
      C one, two Correct Answer Incorrect Answer
      D two, five Correct Answer Incorrect Answer
      E five, five Correct Answer Incorrect Answer

      Solution

      This is important section because government has suggested a changes in this section in Companies Amendment Act 2020. The suggested changes are as follows: Section 165 (6): If a person accepts an appointment as a director in violation of this section, he shall be liable to a penalty of two thousand rupees for each day after the first during which such violation continues, subject to a maximum of two lakh rupees.

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