During the course of Secretarial Audit, it was found that in one of the case of transmission of shares, the company took 4 months from the date of its lodgment. Discuss the provisions relating to the transmission of shar

Answer 2(a) Section 56(4)(c) of the Companies Act, 2013, provides that every company shall, unless prohibited by any provision of law or any order of court, tribunal or other authority, deliver the certificate of all securities transmitted, within a period of one month from the date of intimation of transmission. The Companies (Amendment) Act, 2020 has made changes in the penal provisions contained in Section 56(6) in case of default, and the said amendment came into effect from 21st December, 2020. The amended section 56(6) of the companies Act, 2013 provides that where any default is made in complying with the provisions of sub-section (1) to (5) of section 56, the company and every officer of the company who is in default shall be liable to penalty of ₹ 50000/-. Prior to this amendment, the provision was, where any default is made in complying with the provisions of sub-sections (1) to (5) of section 56 of the Act, the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees.