Register of Loans and Invesbnent

If default is made in complying with the provisions of sub-section (1) or (2) or if any i:r;1spectlon required under Sec. 307 is refused or if any copy required thereunder is not sent within a reasonable time, the company and every officer of the company, who is in default, shall be punishable with fine which may extend to Rs. 50,000* and also with a further fine which may extend to Rs. 2,500* for every day during which the default continues [Sub-sec. (8)].
In case of refusal of inspection of the register, the Company Law Board may also, by order, compel an immediate inspection of the register [Sub-sec. (9)].
Deemed Directors and Record of Their Shareholdings. For purposes of Section 307, any person in accordance with whose directions or instructions the Board of Directors of a company is accustomed to act, shall be deemed to be a director of the company [Sub-sec. (10)].
Every director of a company and every person dee”med to be a director of the company by virtue of sub-sec. (10) of Section 307, shall give notice to the company of
such matters relating to himself as may be necessary for the purpose of enabling the. company to comply with the provisions of that Section [Section 304 (1)].
The notice, as aforesaid, shall be given in writing and if it is not given at a meeting of the Board, the person giving the notice shall take all reasonable steps to secure that it is brought up and read at the meeting of the Board next after it is given [Sec. 308 (2)].
Failure to comply with the provisions of sub-sec. (1) or (2) of Section 308 shall be punishable with imprisonment up to 2 Y2ars or with fine up to Rs. 50,000’ or with both.
Register of Loans and Invesbnent
Sub-section (-?) of Section 372 A (inserted by the Companies (Amendment) Act, 1999) provides th.,.,t every company shall keep a register showing the following particulars in respect of every investment or loan made, guarantee given or security provided by it in relation to any body corporate under sub-section (1), namely:
(i)the name of the body corporate;
(ii)the amount, terms and purpose of the investment or loan or security or
guarantee;
(iii) the date on which the investment or loan has been made; and
(iv)the date on which the guarantee has been given or security has been provided
in connection with a loan.
The aforesaid particulars shall be entered chronologically in the Register within 7 days of the making of investment or loan, or the giving of guarantee or the provision of security.