Report No. 60

Section 13AA (New)

Offences by companies.- (1) If the person committing an offence under any Central Act or Regulation made on or after the day of 1 is a company, then, unless a different intention appears, 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:

1. Date of commencement of amending Act to be inserted.

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 exercised all due diligence to prevent the commission of such offence.

(2) Where an offence under such Act or Regulation has been committed by a company then, unless a different intention appears, any director, manager, secretary or other officer of the company, not being a 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, if it is proved that the offence has been committed with his consent or connivance or that the commission of the offence attributable to any neglect on his part, also, be deemed to be guilty of that offence and 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 persons, and

(b) "director", in relation to a firm, means a partner in the firm.

[Ch. 9]