https://www.taxtmi.com/article/detailed?id=1914 Compounding under the Companies Act, 1956 allows settlement of many corporate offences punishable by fine or by fine and imprisonment where permitted, providing a procedural alternative to litigation. The regime excludes offences attracting custodial sentences and those barred by a prior compounding restriction, and identifies representative compoundable and non compoundable provisions. When compounding is unavailable, directors and officers may face prosecution, arrest and criminal sanctions; arrested persons retain procedural safeguards. The article recommends compliance checklists to avoid penalties and notes companies often elect compounding to avoid economic offence proceedings and collateral regulatory consequences. en-us Sat, 06 Oct 2012 10:16:59 +0530 Sat, 06 Oct 2012 10:16:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1914 Compounding under the Companies Act, 1956 allows settlement of many corporate offences punishable by fine or by fine and imprisonment where permitted, providing a procedural alternative to litigation. The regime excludes offences attracting custodial sentences and those barred by a prior compounding restriction, and identifies representative compoundable and non compoundable provisions. When compounding is unavailable, directors and officers may face prosecution, arrest and criminal sanctions; arrested persons retain procedural safeguards. The article recommends compliance checklists to avoid penalties and notes companies often elect compounding to avoid economic offence proceedings and collateral regulatory consequences. Articles Corporate Laws / IBC / SEBI Sat, 06 Oct 2012 10:16:59 +0530 https://www.taxtmi.com/article/detailed?id=1914