Compounding of Offence

Compounding of Offence

Non-compliance of law results into offences by company or officer in default. Offences can be compoundable and non-compoundable. Compounding generally refers to “doing good the default/non-compliance.” It is a settlement for the offence committed by the company or an officer thereof and a short cut method to avoid litigation and to bring an end to the default. Any offence punishable under the Companies Act, 2013, with a fine only, can be compounded. Necessary application, documents have to be prepared and submitted to the relevant authority for the same.