The Ministry of Corporate Affairs through notification dated the 24th March, 2021 has appointed the 24th March, 2021 as the date on which the provisions of section 23 and section 45 of the Companies Amendment Act, 2020 shall come into force. The amended provisions provides that:
- Where a company fails to transfer the total amount of dividend which remains unpaid or unclaimed to unpaid dividend account, such company, shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of ten lakh rupees and every officer of the company who is in default shall be liable to a penalty of twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of two lakh rupees.
- If a valuer, while conducting valuation of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities, fails to make an impartial, true and fair valuation of any assets which may be required to be valued, to exercise due diligence while performing the functions as valuer, to make the valuation in accordance with such rules as may be prescribed or not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets, he shall be liable to a penalty of fifty thousand rupees.
