OFFENCES BY COMPANIES
(1) If the person committing an offence under this Act is a company, the company as well
as every person in charge of, and responsible to, the company for the conduct of its
business at the time of the commission of the offence 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 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.
(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 that the commission of the offence 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
that offence and shall be liable to be proceeded against and punished accordingly.
Explanation : 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.
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