What are the key amendments to Section 450 of the Companies (Amendment) Act, 2020, and how do they impact the penalties for default where no specific penalty is provided? How does this amendment enhance corporate complia

Understanding Section 450 of the Companies Act, 2013 Section 450 of the Companies Act, 2013 (the Act) deals with penalties for "default where no specific penalty or punishment is provided". It ensures that any contravention of the Act that does not have a defined punishment still attracts legal consequences. Before the Companies (Amendment) Act, 2020, the fine was: For companies: ₹10,000 + ₹1,000 per day for continuing default. For officers in default: ₹10,000 + ₹1,000 per day for continuing default. Amendment to Section 450 in Companies (Amendment) Act, 2020: The Companies (Amendment) Act, 2020 revised Section 450, in line with the government's "Ease of Doing Business" reforms by rationalizing the mechanism for levy of financial penalties on defaulting companies which can have positive impact of enhanced corporate compliance and governance as well as reduce the work load over appropriate courts. Prior to this amendment in 2020, Section 450 provided for levy of fine, which could have been only be levied only by the appropriate courts after prosecuting and convicting the defaulting company and officers. The amendment in 2020, basically replaced the word "fine" with "penalty" and thus changed the implementation mechanism under Section 450 from prosecution before Court to adjudication by appropriate Adjudicating Authority under section 454 and 454A of the Companies Act, 2013". This amendment did not amend prescribed financial penalties under 450.