Director duties default penalties are revised, with court power to recover undue gains and separate penalties for non-compliance. Section 166 of the Companies Act is amended to confine the reference in sub-section (7) to sub-section (5) and to enable the court to direct a director to ... Summary
Director duties default penalties are revised, with court power to recover undue gains and separate penalties for non-compliance.
Section 166 of the Companies Act is amended to confine the reference in sub-section (7) to sub-section (5) and to enable the court to direct a director to pay the amount of undue gains referred to in sub-section (5) to the company. A new sub-section (8) prescribes penalties for default in complying with section 166, other than sub-section (5), namely five lakh rupees for a listed company and two lakh rupees for any other company.
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