Section 10. Offences by companies.
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was 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 this sub-section shall render any such person liable to any punishment provided in this section, 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 under this Act 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, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of such offence and shall be liable to be proceeded against and punished accordingly.
(3) 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.
View Act Footnotes
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Page 2
- 1. 6th March, 1976, vide notification No. S.O. 176(E), dated 6th March, 1976, see Gazette of India, Extraordinary,Part II,sec. 3(ii).
- 2. Subs. by Act 48 of 1986, s. 2, for clause (d) (w.e.f. 6-5-1987).
Page 3
- 1. Section 4 renumbered as sub-section (1) thereof by Act 48 of 1986, s. 3 (w.e.f. 8-3-1976).
- 2. The words and brackets “drawing wages (being wages, not including any commission)” omitted by s. 3, ibid. (w.e.f. 8-3-1976).
- 3. Ins. by s. 3, ibid. (w.e.f. 8-3-1976).
- 4. Sub-section (2) shall stand omitted (date to be notified) by Act 46 of 1982, s. 2.
Page 4
- 1. Ins. by Act 48 of 1986, s. 4 (w.e.f. 6-5-1987).
Page 5
- 1. Ins. by Act 69 of 1982, s. 2 (w.e.f. 13-11-1982).
- 2. Ins. by Act 48 of 1986, s. 5 (w.e.f. 8-3-1976).