Section 272 of the Companies Act, 2013
Section 272 of the Companies Act, 2013 deals with the penalties for offences committed by companies and their officers who are responsible for such offences.
🔹 Section 272 – Punishment for Offences by Companies
✅ Key Provisions:
Offences by Companies:
When an offence under the Companies Act is committed by a company, every person who at the time the offence was committed was:
In charge of, and
Responsible to the company for the conduct of its business,
Offences by Officers in Default:
The company and every officer who is in default shall be liable to be punished with a fine, imprisonment, or both, as prescribed.
Officers Include:
Directors,
Managers,
Secretary,
Or any other person responsible for the conduct of business of the company.
🔸 Purpose:
To ensure accountability of individuals in control of the company.
Prevents companies from escaping liability by blaming only the corporate entity.
Promotes due diligence among officers.
📌 Summary:
| Role | Liability |
|---|---|
| Company | Punished for offence |
| Officer in charge and responsible | Deemed guilty unless proves no knowledge or due diligence |
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