Corporate liability extends to officers for company offences; a due diligence defence can avert personal liability. A company is criminally liable for offences under the Act and persons in charge of company business at the time are deemed guilty; officers are likewise ... Summary
Corporate liability extends to officers for company offences; a due diligence defence can avert personal liability.
A company is criminally liable for offences under the Act and persons in charge of company business at the time are deemed guilty; officers are likewise liable if the offence is committed with their consent, connivance, or attributable negligence. The rule applies mutatis mutandis to partners, kartha or managing trustees in firms, LLPs, HUFs and trusts. A person is not liable if he proves lack of knowledge or that he exercised all due diligence to prevent the offence. "Company" includes a firm or association of individuals and "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.