Offences by companies

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Chapter XIII OFFENCES AND PENALTIES

Statutory text

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence is committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.— For the purpose of this section—
- (a) “company” means a body corporate and includes a company as defined under the Companies Act, 1956, a firm or other association of individuals; and
- (b) “director” in relation to a firm means a partner in the firm.

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