https://www.taxtmi.com/caselaws?id=398733 A nominee director of a public sector bank cannot be exposed to prosecution for alleged Companies Act violations merely because he attended board meetings and approved financial statements. Vicarious liability is not automatic under Sections 128, 129, 447 and 448 of the Companies Act, 2013 unless the record shows specific material of individual culpability, such as connivance, bad faith, or conscious approval of a false or misleading statement. Section 16A of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 further protects nominated directors for acts done or omitted in good faith. In the absence of such averments, the complaint and investigation material are insufficient to justify summons. en-us Mon, 21 Sep 2020 00:00:00 +0530 Mon, 04 Jan 2021 13:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=398733 A nominee director of a public sector bank cannot be exposed to prosecution for alleged Companies Act violations merely because he attended board meetings and approved financial statements. Vicarious liability is not automatic under Sections 128, 129, 447 and 448 of the Companies Act, 2013 unless the record shows specific material of individual culpability, such as connivance, bad faith, or conscious approval of a false or misleading statement. Section 16A of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 further protects nominated directors for acts done or omitted in good faith. In the absence of such averments, the complaint and investigation material are insufficient to justify summons. Case-Laws Companies Law Mon, 21 Sep 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=398733