Penalty for failure to file resolutions now prescribes initial and continuing penalties and officer liability for defaults.

The amendment replaces sub section (2) of section 117 to prescribe an initial penalty for failure to file the resolution or agreement within the specified period and a continuing daily penalty subject to a maximum, with corresponding penalties and daily liability for every officer in default including liquidator. It also substitutes the second proviso to clause (g) of sub section (3) to exclude from that clause resolutions to grant loans, give guarantees or provide security in the ordinary course of business by banking companies, prescribed NBFCs under Chapter IIIB (in consultation with RBI), and prescribed housing finance companies (in consultation with NHB).

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