Fine to be imposed in case of failure to submit returns

(1) Any return, notice or information required to be provided by the company to this Office or information required to be provided by the officer or shareholder to the company pursuant to this Act shall be provided by the director of the company or the officer or shareholder who has the duty to provide such return, notice or information to the Officer or the company, as the case may be, within the time limit, if any, prescribed by this Act for the provision of such return, notice or information.

(2) The following director of a company or its officer who is in default in providing the return, notice, information or reply as referred to in Section *51, 78, 80, 120, 131 or 156 within the time limit as referred to in Sub-section (1) shall be punished by the Registrar with fine, as follows:

(a) a fine of one thousand rupees if the paid-up capital of the company is up to two million five hundred thousand rupees, a fine of two thousand rupees if the paid-up capital of the capital is up too often million rupees, and a fine of five thousand rupees if the paid-up capital of the company is more than ten million rupees, for a period not exceeding three months after the expiry of the time limit;

(b) a fine of one thousand five hundred rupees if the paid-up capital of the company is up to two million five hundred rupees, a fine of three thousand rupees if the paid-up capital of the capital is up to ten million rupees, and a fine of seven thousand rupees if the paid-up capital of the company is more than ten million rupees, for an additional period not exceeding three months after the expiry of the time limit as referred to in Clause (a);

(c) A fine of two thousand five hundred rupees if the paid-up capital of the company is up to two million five hundred thousand rupees, a fine of five thousand rupees if the paid-up capital of the capital is up to ten million rupees, and a fine of ten thousand rupees if the paid-up capital of the company is more than ten million rupees, for an additional period not exceeding six months after the expiry of the time limit as referred to in Clause(b);

(d) A fine of five thousand rupees, for each year, if the paid up capital of the company is up to two million five hundred thousand rupees, a fine of ten thousand rupees, for each year, if the paid up capital of the capital is up to ten million rupees, and a fine of twenty thousand rupees, for each year, if the paid up capital of the company is more than ten million rupees, in cases where even the time limit as referred to in Clause (c) has also expired.

(3) In the case of a company not distributing profits which is in default in providing such statement, information or notice within the time limit as referred to in Sub-section (1), the director or officer of such company shall be liable to the same fine as is imposable on a company of which paid up capital is up to ten million rupees.

(4)Any director, officer or shareholder who is liable to pay the fine as referred to in Sub-section (2) shall pay it to the Office and submit to the Office or the concerned company such returns as required to be forwarded.

(5) In calculating the period of expiration of the time limit pursuant to Sub section (2), it shall be calculated from the date of commencement of this Act.

(6) Any director , officer or shareholder of a company who is in default in providing such other statement, notice or information as is required to be forwarded to the Office pursuant to this Act shall be punished with a fine of two hundred rupees for every month, after the expiration of one month of the date of expiry of the time limit within which such statement, notice or information is required to be provided.

*Amended by the Act Amending Some Nepal Acts, 2064