Section 606 – The Companies Act,1956

The Companies Act, 1956

606. Penalty for contravention of sections 603, 604, 605 and 605A

606. Penalty for contravention of sections 603, 604, 3[605 and 605A]

    Any person who is knowingly responsible-

      (a) for the issue, circulation or distribution of a prospectus; or

      (b) for the issue of a form of 2[application for shares, debentures or Indian Depository Receipts];

    in contravention of any of the provisions of sections 603, 604, 3[605 and 605A], shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to 1[fifty thousand rupees], or with both.

    1 The words “five thousand rupees” substituted by the Companies (Amendment) Act, 2000, w.e.f. 14th. December, 2000.

    2 The words “application for shares or debentures” substituted by the Companies (Amendment) Act, 2000, w.e.f. 14th. December, 2000.

    3 The words and figures “and 605” substituted by the Companies (Amendment) Act, 2000, w.e.f. 14th. December, 2000.

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