Offences by companies

Labour202640 sections8 chapters

Chapter VI COMPLIANCE AND ENFORCEMENT

Statutory text

(1) Where an offence under this Act, has been committed by a company, every person who, at the time the offence was committed, was directly in charge and 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 sub-section
(1) shall render any such person liable to any punishment, 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 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, Secretary 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) “Company” means any body corporate, and includes 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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