1941 (11) TMI 5

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....mbatore, preferred a complaint against the Coimbatore National Bank, Limited, of that town for not complying with a requirement of section 87(2) of the Indian Companies Act that particulars of any change in the directorships held by any of its directors should be reported to the Registrar within fourteen days of the change. The sub-Divisional Magistrate of Coimbatore who tried the case, found that....

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....nd intention, and that on a grammatical construction of section 32(5) this knowledge, wilful intention, has only to be proved where the charge is against an officer of the company, and that the company is liable for failing to comply with the requirements of the section even though none of its officers may be. Section 87(4) says that if default is made in complying with sub-section (1) or sub-sect....

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....n error may be and generally is clear from the records of the company. On the other hand, if we assume that Ponniah Goundar did not officially inform the accused company that he had resigned from one of his directorships, the company would not have been in a position to send the information to the Registrar. A clear distinction between the two sets of cases can no doubt be made; but section 87 doe....

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....any of the particulars contained in the register; and the particular in question is that of other directorships held by the directors. If Mr. Somasundaram's contention were correct, then there would be a premium upon negligence by companies. Even though a notice had been sent to the company of a change in directorships or in other particulars, the company would be free of any penalty as long as it....