Corporate vicarious liability extends to persons in charge and officers, who may be prosecuted absent due diligence. Where a company commits an offence under the Act, the company and every person in charge and responsible for its business are deemed guilty and liable to prosecution; directors, managers, secretaries or other officers are individually liable where the offence is by their consent, connivance or negligence. The rule applies similarly to partners, the karta and managing trustees, subject to a defence if the person proves lack of knowledge or that all due diligence was exercised. 'Company' includes firms and associations; 'director' in relation to a firm means a partner.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Corporate vicarious liability extends to persons in charge and officers, who may be prosecuted absent due diligence.
Where a company commits an offence under the Act, the company and every person in charge and responsible for its business are deemed guilty and liable to prosecution; directors, managers, secretaries or other officers are individually liable where the offence is by their consent, connivance or negligence. The rule applies similarly to partners, the karta and managing trustees, subject to a defence if the person proves lack of knowledge or that all due diligence was exercised. "Company" includes firms and associations; "director" in relation to a firm means a partner.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
