37. Penalty for falsely claiming to be a member, etc.—Subject to the provisions of section 10, any
person who,—
(a) not being a member of the Institute,—
(i) represents that he is a member of the Institute in any of the manners mentioned in section
7; or
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(ii) uses the designation "Actuary"; or
(iii) uses the letters "AIAI" or "FIAI" after his name; or
(iv) practises the profession of an Actuary; or
(b) being a member of the Institute, but not having a certificate of practice, represents that he is in
practice, or practises as an Actuary,
shall be punishable on first conviction with fine which may extend to one lakh rupees, and on any
subsequent conviction with imprisonment which may extend to one year, or with fine which may extend
to two lakh rupees, or with both.
38. Penalty for using name of Institution, awarding degrees of actuarial science, etc.—(1) Save
as otherwise provided in this Act, no person shall—
(a) use a name or a common seal which is identical with the name or the common seal of the
Institute or so nearly resembles it so as to deceive or as is likely to deceive the public; or
(b) award any degree, diploma or certificate or bestow any designation which indicates or
purports to indicate the position or attainment of any qualification or competence in actuaryship
similar to that of a member of the Institute; or
(c) seek to regulate in any manner whatsoever the profession of Actuaries.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other
proceedings, which may be taken against him, be punishable with fine, which may extend on first
conviction to fifty thousand rupees and on any subsequent conviction with imprisonment which may
extend to one year, or, with fine which may extend to one lakh rupees, or with both.
(3) Nothing contained in this section shall apply to any University or other institution established by
law or to any body affiliated to the Institute.
39. Companies not to engage in actuarial practice.—(1) No company, whether incorporated in
India or elsewhere, shall practice as Actuaries.
(2) Any company contravening the provisions of sub-section (1) shall be punishable on first
conviction with fine which may extend to ten thousand rupees, and on any subsequent conviction with
fine which may extend to twenty-five thousand rupees.
40. Unqualified person not to sign documents.—(1) No person other than a fellow member of the
Institute shall sign any document on behalf of an Actuary in practice or a firm of such Actuaries in his or
its professional capacity.
(2) Any person contravening the provisions of sub-section (1) shall, without prejudice to any other
proceedings which may be taken against him, be punishable on first conviction with fine which may
extend to fifty thousand rupees, and on any subsequent conviction with imprisonment which may extend
to one year, or with fine which may extend to one lakh rupees, or with both.
41. 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.
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(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.
42. Sanction to prosecute.—No person shall be prosecuted under this Act except on a complaint
made by or under the order of the Council or of the Central Government.