Act, 2013 (Central Act 18 of 2013).

Offences by Societies or Trusts.- (1) Where an offence under Chapter IV of this Act has been committed by a society or a trust, every person who, at the time the offence was committed, was in charge of, and was responsible to, the society or trust for the conduct of the business of the society or trust, as well as the society or trust, 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 had exercised all due diligence to prevent the commission of such offence.

1. (2) Notwithstanding anything contained in sub-section (1), where an offence under Chapter IV of this Act has been committed by a society or trust 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, trustee or other officer of the society or trust, such director, manager, secretary, trustee or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.- For the purposes of this section:-
   • (a) "Society" means anybody corporate registered under the Societies Registration Act, 1860(Central Act 21 of 1860) and "trust" means anybody registered under the Indian Trust Act, 1882(Central Act 02 of 1882) or any other law for the time being in force; and
   • (b) "director" in relation to society or trust, means a member of its governing board other than an ex-officio member representing the interests of the Central Government or State Government.