Section 6 - Amendment of section 53 - Companies (Amendment) Ordinance, 2019

Amendment of section 53 6. In section 53 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:- (3) Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent. per annum from the date of issue of such shares to the persons to whom such shares have been issued. .