The Companies Act, 2013 and rules made thereunder serves as the regulatory framework for companies registered and operating in India. The said Act delineates various violations and corresponding penalties for non-compliance and also provides an avenue for resolving certain offences through compounding, a process where company and officers in default settle their violating acts by paying fines as to avoid legal actions and proceedings.

Compounding of offences provisions offers companies the opportunity to resolve issues without protracted legal battles. Section 441 of the Companies Act, 2013 read with the Companies (Compounding of Offences) Rules, 2016, govern the process of compounding. These rules delineate the eligible offences, the compounding procedure, the designated authority overseeing compounding, and the associated penalties for each offence. The offences not being an offence punishable with imprisonment only, or punishable with imprisonment and fine are not compoundable offences.

The details provisions can be studied from my book titled as Company Law Procedures and Compliances.