Thursday, April 7, 2016

Section 86 of Companies Act, 2013

Section 86 of Companies Act, 2013

Punishment for contravention.

If any company contravenes any provision of this Chapter, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees, or with both.

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Section 86 of Companies Act, 1956

New issues of share capital to be only of two kinds

The share capital of a company limited by shares shall be of two kinds only, namely :

(a) equity share capital ; and

(i) with voting rights; or    

(ii) with differential rights as to dividend, voting or otherwise in accordance with such rules and subject to such conditions as may be prescribed.

(b) preference share capital.

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