Section 305 of the Companies Act, 2013
Section 305 of the Companies Act, 2013
Title: "Offences by companies"
📘 Summary:
Section 305 deals with the liability of companies and their officers for offences committed under the Companies Act, 2013.
🔍 Key Provisions:
✅ 1. Liability of the Company:
When an offence under the Act has been committed by a company, the company itself shall be liable to be prosecuted and punished.
👥 2. Liability of Officers in Default:
Every officer who is in charge of, and responsible for, the conduct of the business at the time of the offence will also be liable.
If it is proved that the offence was committed with the consent or connivance of, or was attributable to negligence of such officer, they shall be liable to be punished accordingly.
⚖️ Purpose:
To ensure accountability at both the corporate and individual officer levels for violations of the Companies Act, thereby promoting compliance and good governance.
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