Section 18 - Amendment of section 89 - The Companies (Amendment) Act, 2020

Amendment of section 89. 18 . In section 89 of the principal Act,- (a) for sub-section (5), the following sub-section shall be substituted, namely:- (5) If any person fails to make a declaration as required under sub-section (1) or sub-section (2) or sub-section (3), he shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of two hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees. ; (b) for sub-section (7), the following sub-section shall be substituted, namely:- (7) If a company, required to file a return under sub-section (6), fails to do so before the expiry of the time specified therein, the company and every officer of the company who is in default shall be liable to a penalty of one thousand rupees for each day during which such failure continues, subject to a aximum of five lakh rupees in the case of a company and two lakh rupees in case of an officer who is in default. ; (c) after sub-section (10), the following sub-section shall be inserted, namely:- (11) The Central Government may, by notification, exempt any class or classes of persons from complying with any of the requirements of this section,except sub-section (10), if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification. .