Question

A Statement is followed by Conclusions I and II.
Statement: Under Section 157 of the Companies Act, 2013, a company must, within fifteen days of receiving intimation under Section 156, furnish the Director Identification Number (DIN) of its directors to the Registrar. Failure attracts penalties.
Conclusions:
I. If a company fails to furnish the DIN, it can be penalized.
II. Every officer of the company in default is also liable for penalties.
Which one is correct?

• A. Only Conclusion I follows
• B. Only Conclusion II follows
• C. Both Conclusions I and II follow
• D. Neither Conclusion I nor II follows

Hint:

Companies Act → Some defaults punish company only; others punish both company + officers. Check section carefully.

Answer 1

The Correct Option is A

Step 1: Evaluating Conclusion I.
Section 157 explicitly penalizes the company for failing to furnish DIN information. Hence this conclusion is correct.
Step 2: Evaluating Conclusion II.
Section 157 penalizes only the company, not every officer in default (unlike Section 159). Hence this conclusion is incorrect.
Step 3: Conclusion.
Thus, only Conclusion I follows.