Extension of compound reduction incentive until 31 December

   

Section 371A Companies Act 1965

The incentive refers to Sec 371A of the Companies Act 1965, according to which the Registrar may, in case he deems appropriate to do so, compound any offence committed by any person under this Act, by making a written offer to render payment within a specified period of time. Where an offence has been compounded, no prosecution shall thereafter be instituted in respect of such offence against the person to whom the compound offer was made. 

   

Under the current incentive scheme, companies and directors are eligible for a reduction of 90 percent from the original value of all respective compounds. The extension aims to provide more time for companies to comply with legislation, and to lessen the financial burden towards the nation’s post-pandemic economic recovery.