(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
(***) that part of the business of the company to which the offence
relates, as well as the company, (***)shall be liable to be
proceeded against and punished accordingly.
(2) Nothing contained in sub-section (1) shall render any such
person liable to (***) be proceeded against and punished accordingly
under this Act, if he proves that the offence was committed without
his knowledge or that he had exercised all due diligence to prevent
the commission of such offence.
(3) 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
(***)liable to be proceeded against and punished accordingly:
Provided that an independent director and a non-executive director
of a company shall be held liable only if it is shown that the acts
of omission or commission by the company had occurred with his
knowledge or with his consent attributable to him or where he had
not acted diligently.
Explanation.— For the purposes of this section, the expressions—
(a) “company” means any body corporate, and includes—
(i) a firm; and
(ii) an association of persons or a body of individuals whether
incorporated or not.
(b) “director” in relation to—
(i) a firm, means a partner in the firm;
(ii) an association of persons or a body of individuals, means any
member controlling affairs thereof.