Amendment status not verified — confirm the current text below against the official source.
Contravention etc. by companies (1) Where a contravention of any of the provisions of this Act or failure to comply with any order or direction given under this Act has been made by a company, every person who at the time the contravention or failure was made was in charge of and was responsible to the company for the conduct of lie business of the company, as well as the company shall be deemed to be guilty of the contravention or failure, as the case may be, and shall be liable to be proceeded against the imposition of penalty accordingly; Provided that nothing contained in this sub-clause shall render any such person liable to any penalty, if he proves that such contravention or failure, as the case may be, was made without his knowledge or that he exercised all due diligence to prevent the making of such contravention or failure, as the case may be. (2) Notwithstanding anything contained in sub-clause (1), where a contravention or failure under this Act has been made by a company and it is proved that such contravention or failure has been made 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 or Manger, Secretary, or other officer shall also be deemed to be guilty of that contravention or failure, as the case may be and shall be liable to be proceeded against and imposed penalty accordingly. Explanation — For purposes of this clause - (a) "company" means any body corporate, and includes a firm or other association of individuals; (b) "director", in relation to a firm, means a partner in the firm. CHAPTER-V MISCELLANEOUS