Distinguish between the following: Compounding and consent orders

CS Professional · Drafting, Appearances and Pleadings · PYQS · June 2018
Distinguish between the following: Compounding and consent orders

Answer & Explanation:

Compounding Compounding means that the accused and the complainant have come to terms and the dispute between the parties has been settled amicably or adjusted by agreement and the complainant agrees not to prosecute the accused. The accused and the complainant then make a joint application to the court that the parties have come to terms and the case may not be proceeded with. Generally, offences which are of a private nature and relatively not serious are made compoundable. Consent Orders Consent Order means "an order settling administrative or civil proceedings between the regulator and a person (Party) who may prima facie be found to have violated securities laws." The Administrative/Civil enforcement actions include issuing directions, suspension or cancellation of certificate of registration, imposition of monetary penalty, pursuing suits and appeals in courts and Securities Appellate Tribunal (SAT). It may settle all issues or reserve an issue or claim, but it must precisely state what issues or claims are being reserved. Consent Order provides flexibility of wider array of enforcement and remedial actions.

Topics: Legal Procedures

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