Amendment status not verified — confirm the current text below against the official source.
· ·. (1) Where an offence committed by a personunder this Act Offences byCompanies, is a company, every person who, at the time the offence was committed was in chargeof, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guiltyof the offence and shall be liable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (I), 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 negligenceon thepart of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be 'glliltyof that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence underthis.Acthas been committed by a taxable personbeing a partnership firm or a Limited LiabilityPartnership or a. Hindu undivid? familyor a trust, the partner or karta or managing tfUstee shall be deemed to be guilty of that offen? and shall be liable to be proceeded against and punished accordinglyand the provisions of sub-section (2) shall mutatis mutandis applyto such persons. · (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed· without his knowledgeor that he had exercisedall duediligence to prevent the commission of such offence. · Explanation:-For the purposes of this section,- 2 of 1974 134 (i) "company" means a body corporate and includes a firm or other association of individuals; and .(ii) "dlrector'; in relation, to a firm, means'a partner in the firm. ·