Section 405 of the Companies Act, 2013
Section 405 of the Companies Act, 2013
Title: Power of Central Government to direct companies to furnish information or statistics
Bare Act Language (Simplified):
The Central Government may, by notification, require companies or any class of companies to furnish such information or statistics as may be specified, related to their constitution, business, finances, or operations.
The company must furnish the required information within the time and in the manner specified in the notification.
If a company fails to comply:
The company shall be punishable with a fine up to ₹25,000, and
Every officer in default may be fined up to ₹25,000, and in case of continuing default, a further fine up to ₹1,000 per day.
Key Points:
This section empowers the Central Government to collect data from companies when needed.
It is typically used for regulatory, statistical, or policy formulation purposes.
Non-compliance results in penalties.
Example Scenario:
If the government wants detailed data on CSR spending or environmental impact from manufacturing companies, it can issue a notification under Section 405 requiring such companies to submit that information.
Section 405 of the Companies Act, 2013
Title: Power of Central Government to direct companies to furnish information or statistics
Bare Act Language (Simplified):
The Central Government may, by notification, require companies or any class of companies to furnish such information or statistics as may be specified, related to their constitution, business, finances, or operations.
The company must furnish the required information within the time and in the manner specified in the notification.
If a company fails to comply:
The company shall be punishable with a fine up to ₹25,000, and
Every officer in default may be fined up to ₹25,000, and in case of continuing default, a further fine up to ₹1,000 per day.
Key Points:
This section empowers the Central Government to collect data from companies when needed.
It is typically used for regulatory, statistical, or policy formulation purposes.
Non-compliance results in penalties.
Example Scenario:
If the government wants detailed data on CSR spending or environmental impact from manufacturing companies, it can issue a notification under Section 405 requiring such companies to submit that information.
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