Ans. Non-compliance with company law can result in various penalties, which may include:
- Fines: Companies or individuals found guilty of non-compliance may be required to pay fines as imposed by the relevant authorities.
- Legal action: Non-compliance can lead to legal action, including civil lawsuits or criminal prosecution, depending on the nature and severity of the violation.
- Disqualification: Directors or officers of a company may be disqualified from holding similar positions in other companies if they are found to have breached company law.
- Loss of privileges: Non-compliant companies may lose certain privileges, such as the ability to raise capital from the public, access to government contracts, or tax benefits.
- Reputation damage: Non-compliance can damage a company's reputation and trust among its stakeholders, leading to potential loss of business and opportunities.