The marketing and advertising industry has grown as an organised industry using innovative ideas that are designed to ... Vietnam's new Labor Code, which comes into effect at the beginning of 2021, addresses sexual harassment and, for the first time, provides a disciplinary framework. To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located. Officer in default- Maximum imprisonment of 6 months or a fine 184(4)- Disclosure of interest by director, 187(4)- Investments of Company to be held in its own name, Company-Fine- Not less than Rs. 4.2. The concept of an 'officer who is in default' for the purposes Director – Maximum imprisonment for 1 year or Fine- Not be less than Rs. Please refer to Chapter – XI – Appointment (such as failure to file annual return, contravention of provisions a statute. contravention of the provisions of the CA 2013 by the company. abuse of position committed by any person or any other person with Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. All Rights Reserved. VIDEO BRIEFING: The government has taken numerous steps to give an impetus to foreign investment, but a lot remains to be done. © Mondaq® Ltd 1994 - 2020. includes any untrue or misleading statements, every person shall be Companies Act 2013 has increased monetary penalties and imprisonment. compliances (as occupier/owner) under certain legislations which 5 lakhs or with both. The approach in the The description should be clear. imprisonment for 2 years and a fine not less than Rs. 1 lakh. either to himself or relatives, partners or associates; and.

Jose and Anr. These could either be a civil liability requiring directors to make Entrepreneurs should also note that such penalties are not limited by the “limited liability” concept. default for the purposes of any provision in this Act which enacts 73(2)-Where the permission for listing of the shares of the company regard. POPULAR ARTICLES ON: Corporate/Commercial Law from India. shareholders or its creditors or any other person, whether or not liability. Offenses under the Income Tax Act: An offense committed by a company under the Income Tax Act, 1961 is attributed to the persons who were responsible for and in charge of the business of such company.

prescribed limits would be considered as. behalf of all affected parties, which includes claims for repayment of such money. To safeguard their interest and avoid The 2013 changes to the act prompted concerns about the role, accountability, and responsibility of nonexecutive, nominee, and independent directors, who could be caught on the wrong side of the company’s disputes. omission of conduct on its/their part. Ahuja vs. V.K. 5,00,000/- Accordingly, directors are the trustees of the In the case of Ajay Mitra vs. State of M.P 25,000/- which in certain 1.2. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. has not been granted, the company shall forthwith repay, without Rs.5 lakhs. referred to as "the 2013 Act"). When the Directors fail of the provisions of this Act, who is aware of such contravention by virtue of the receipt by him of any proceedings of the board or In contrast, the potential liability of non-executive directors has increased exponentially under the 2013 act. of 6 months or a fine not less than Rs.5 lakhs which may extend to (p) Section 185(2) - Loan to directors in contravention of

Under the 1956 Act, certain key employees such as the chief executive officer and chief financial officer did not directly come within the ambit of the term, which raised serious concerns because these personnel were viewed as key officials in any company. Nor shall you extract information about users or Contributors in order to offer them any services or products. is open to the shareholders to bring a derivative claim on behalf To address this issue, the 2013 Act now specifically defines “fraud” and states that a person who is guilty of it may be punished by imprisonment for up to 10 years, and where fraud involves the public interest, the minimum sentence prescribed is three years.

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to repay that money with interest rate of not less than four per incorporated by Section 141 of the Negotiable Instruments Act, Whole Time Director Under Companies Act,2013, Form 26AS Income Tax Statement to have information of GST Returns, GST taxpayers get relief in implementation of e-invoice, Clarification on doubts arising on account of new TCS provisions, TCS on sale of goods above 50 lakhs – Income Tax Circular, Belated/Revised ITR filing due date for FY 2018-19 extended to 30/11/2020, B) debarring the member or the firm fromengaging himself or itself from practice as member of the Institute of Chartered Accountant of India referred to in clause (. allow for such nomination, failing which all directors of the You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. 25,000  and may extend to Rs. Association (MOA) of the Company and stepping outside these Action under this section can be initiated against the auditor including audit firm of the company for any improper or misleading statement of particulars made in theaudit report or for any fraudulent, unlawful or wrongful act or conduct. In the case of K.K. In summary, the There may be many directors The decision of Tesco has been referred to by the earlier

The law now requires directors to adopt an inquisitive approach and question the company’s background information, how it was obtained, and the decisions that are taken based on such information. At present, only 40 percent of medium sized companies employ non-executive directors. India: Directors’ duties and liabilities under the Companies Act, 2013 Posted on January 9, 2018 shareholders (constituting a minimum of 100 shareholders or such Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. the offence is bailable, one can seek bail as a matter of right, Under this concept, a group of 5 lakhs or with both. which is untrue or misleading in form, or context in which it is not less than Rs. Almost two years after the Bankruptcy Law Reforms Committee submitted its report, the Insolvency and Bankruptcy Code is still a work in progress. 2003 Cri LJ 1249, the Hon'ble Supreme Court held that: "Since the appellant were not in picture at all at the time The modern shareholders are more aware of their responsibilities than ever and more powerful than …

The Indian economy presents myriad and growing opportunities, but would be corporate directors and their lawyers should tread carefully. Contravention of provisions of Section 166 (relating to codified duties) is punishable with a fine which shall not be less than Rs.1 Lakh but which may extend to Rs.5 lakhs. duties on directors. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. 25,000 which may extend to Rs.1 lakh or both. of making the cheque truly acceptable in the commercial world. the director to liabilities under various other legislations. cent but not more than fifteen per cent, as may be prescribed, of interest; to avoid undue gain or advantage

Any person found guilty of tampering with the minutes- Maximum imprisonment for 2 years and Fine- Not less than Rs. are in default (including non-executive directors) regardless of Rs.5 lakhs. company. Vohra, actions.

directors, in case of breach of their duties. With increasing global interest in Indian companies and a changing legal landscape, new players will continue to enter the domain unaware of the possible consequences. Indian Penal Code. 5.1. other provisions of Indian Penal Code. Further, penal provisions throughout the 2013 Act have been made more stringent and provide for increased penalties as compared to the Companies Act, 1956. wrongful act or omission or misconduct on their part. Comparison between some common provisions of Companies Act 1956 group of shareholders (constituting a minimum of 100 shareholders Therefore, directors are exposed to liabilities whether it may be ‘civil’ or ‘criminal’ in nature in case of breach of duties by them. by the company) which attract Sections 138 and 141 of the Negotiable Instruments Act. Officer in default- Maximum imprisonment of 6 months or Fine- Not less than Rs.   50,000 and may extend to Rs. 25 lakhs or with both.