https://www.taxtmi.com/caselaws?id=398726 The High Court found the petitioner company in violation of Section 42(1) of the Companies Act, 1956 for allotting shares to its subsidiary. Each defaulting officer, being members of the board of directors, was fined Rs. 5,000 as a deterrent. The petitioner was directed to pay the fines to the Ministry of Corporate Affairs within three weeks. The compounding application was disposed of upon fine remittance, with a compliance report due in four weeks. The Registrar of Companies was tasked with taking further actions based on the compliance report. en-us Tue, 16 Jun 2020 00:00:00 +0530 Sat, 31 Oct 2020 16:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=398726 The High Court found the petitioner company in violation of Section 42(1) of the Companies Act, 1956 for allotting shares to its subsidiary. Each defaulting officer, being members of the board of directors, was fined Rs. 5,000 as a deterrent. The petitioner was directed to pay the fines to the Ministry of Corporate Affairs within three weeks. The compounding application was disposed of upon fine remittance, with a compliance report due in four weeks. The Registrar of Companies was tasked with taking further actions based on the compliance report. Case-Laws Companies Law Tue, 16 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=398726