Offences by Companies, Body corporates and Co-operative Societies

Offences by Companies, Body corporates and Co-operative Societies.—

1. (1) If the person committing an offence under this Act is a company, body corporate or co-operative society, every person who, at the time the offence was committed was in charge of, and was responsible to, the company, body corporate or co-operative society for the conduct of the business of such company, body corporate or co-operative society, as well as the company, body corporate or co-operative society, 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 such 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. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company, body corporate or co-operative society and it is proved that the offence has been committed with the consent or connivance of or that the commission of the offence is attributable to any negligence on the part of any Director, Manager, Secretary or other officer of the company, body corporate or co-operative society such Director, Manager, Secretary or other officer of the company, body corporate or co-operative society 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 company incorporated under the Companies Act, 2013 (Central Act 18 of 2013) or incorporated under a previous Company Law.
   • (b) "body corporate" means a group of people authorised by law to act as a legal personality and having its own powers, duties and liabilities and includes a company incorporated outside India.
   • (c) "co-operative society" means a society registered under any law relating to co-operative societies.
   • (d) "director" in relation to a firm, means a partner in the firm.