Section 59 - Penalty and interpretation - Companies Act, 1956

Penalty and interpretation. [1] 59. (1) If any prospectus is issued in contra vention of section 57 or 58, [2] the company, and every person, who is knowingly a party to the issue thereof, shall be punishable with fine which may extend to [3] [fifty thousand rupees]. (2) In sections 57 and 58, the expression "expert" includes an engineer, a valuer, an accountant and any other person whose profession gives authority to a statement made by him. ----------------------------- Notes:- [1] Prosecution powers are exercisable by DCA SEBI officals concurrently. [2] Prosecution powers delegated to SEBI officials vide Notification No. 727(E), dated 18-9-2000. [3] Substituted for "five thousand rupees" by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000.