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+--- Thread: Form 29 Penalty ??? (/showthread.php?tid=6846)
Form 29 Penalty ??? - Choohan - 11-05-2009
I am unable to find out the plenty for non-filling of the form 29. can any body tell me the penalty of non-filling along with the section reference.
Thanks
- kamranACA - 11-12-2009
Dear
Section 469 of CO84 provides for additional fee for late filings that can be charged maximum up to 3 times of applicable fee. However, practically this three times is used as a rule and no lesser additional fee is charged by SECP. Since the fee of Form-29 filing is Rs. 1,000/ currently, the additional fee would be Rupees 3,000/- aggregating to Rs. 4,000/- (in total) for each late filing of Forms-29.
SECP may not charge any further penalty for such late filings, provided such non-compliances are not material and continuing. However, section 498 of CO84 empowers the SECP to charge huge penalties in any undefined case of non-compliance. Therefore, it is the prerogative of SECP to charge (or not charge) any further penalty to be calculated under section 498. Normally SECP issues notices for hearing in case of severe non-compliances and then charge such penalties.
For convenience I am narrating below section 498
âIf a company or any other person contravenes or fails to comply with any provision of the Companies Ordinance, 1984 or any condition, limitation or restriction, subject to which any approval, sanction, consent, confirmation, recognition, direction, or exemption in relation to any matter has been accorded, given or granted for which no punishment is provided elsewhere in the Companies Ordinance, 1984, the company and every officer of the company who is in default, or such other person shall be punishable with a fine which may extend to fifty thousand rupees, and where the contravention is continuing one, with a further fine which may extend to five hundred rupees for every day after the first, during which the contravention continues.â
A scheme named âCompanies Regularization Schemeâ was introduced which remained effective till 31 July 2009 that provided shelter against all penalties, if the filings were made up to 31 July 2009, against all outstanding pending filings. Many companies took the benefit of this scheme and many consultants earned significant fees to ensure compliance by their client. This scheme has come to an end but is being expected to be introduced again. However, there is no surety about re-launching of this scheme.
In view of this the conclusion is to file all pending ââformsâ immediately with additional fee under section 469 and then wait for the best.
Regards,
KAMRAN.
- Choohan - 11-13-2009
Thank you very very much for your such detailed answer
That is a great help for me.
Thanks again
- kamranACA - 11-13-2009
Welcome buddy.
Regards,