liabilities of directors & other officers. liabilities of directors the companies act, 1956 the...

LIABILITIES LIABILITIES OF OF

DIRECTORSDIRECTORS&&

OTHER OTHER OFFICERSOFFICERS

LIABILITIES OF DIRECTORSLIABILITIES OF DIRECTORS• THE COMPANIES ACT, 1956

• THE FACTORIES ACT, 1948

• THE PAYMENT OF BONUS ACT, 1965

• THE INDUSTRIAL DISPUTES ACT, 1947

• THE PAYMENT OF GRATUITY ACT, 1972

• WATER (PREVENTION AND CONTROL OF POLLUTION ACT), 1974

• AIR (PREVENTION AND CONTROL OF POLLUTION ACT), 1981

• ENVIRONMENT (PROTECTION) ACT, 1986

• PUBLIC LIABILITY INSURANCE ACT, 1991

THE COMPANIES ACT1956

Section Nature of Offence Liability

62 Civil Liability for mis-statement in Prospectus

Compensation to every person who have subscribed for shares in good faith

63 Criminal Liability for mis-statement in Prospectus

Imprisonment for a term which may extend to TWO years or with fine which may extent to Rs. 1,00,000 or both

68 Penalty for fradulently inducing persons to invest money.

Imprisonment which may extend to FIVE years or fine which may extend to Rs. 1, 00,000 or both.

269 Appointment and payment of remuneration to Managing Director/Whole time directors should be according to Schedule

If contravened(a) Fine of

Rs.1,00,000.(b) Refund of

salaries,


XIII of the Acf or with the prior approval of the Central Government

Commission and other perquisites.

Contravention of (a) and (b) above.Imprisonment which may extend to THREE Years and fine of Rs.500 every day during which the default continues.

279 For holding office of Director in more than 15 Companies

Fine extending to Rs. 50,000 for each companies after the first fifteen companies

283 For holding office of Director knowing that he is disqualified to hold such office

Fine extending to Rs. 5000 everyday he functions as a Director.


292A Constitution and Convening the meetings of Audit Committee

Imprisonment which may extend to ONE year or fine which may extend to Rs.50,000 or with both.

293A Prohibitions and Restrictions regarding political contributions.

Imprisonment which may extend to THREE years and Fine.

295 Loans to Directors without the approval of the Central Government.

Fine which may extend to Rs.50000 or with simple imprisonment for a term which may extend to SIX Months.

299 Disclosure of Interest by Directors

Fine which may extend to Rs. 50000.

300 Interested Directors not to participate in the meeting and vote in the proceedings.

Fine which may extend to Rs.50000/-


372A Intercorporate Loans and Investments

Imprisonment which may extend to TWO Years or fine which may extend to Rs.50000/-

629A Contravention of Provisions of this Act for which penalty is not provided elsewhere in the Act

Fine which may extend to Rs.5000.

Continuing OffenceFine of Rs.500 everyday after the first day in which the default continues.

THE FACTORIES ACT1948

(OCCUPIER AND MANAGER)


Proviso to Section 92

Contravention of provisions of Chapter VI (Safety of Employees) and Section 87 (Dangerous Operations) which has resulted in an accident causing death or serious bodily injury

Accident causing death Fine shall not be less than Rs.25000/-

Accident causing serious bodily injuryFine shall not be less than Rs.5000/-

92 General Contravention Imprisonment extending to TWO years or fine upto Rs.1,00,000 or both.

Continuing OffenceRs.1000 every day during which the default continues.


94 Enhanced penalty after previous conviction under Section 92

Imprisonment extending to THREE years and fine NOT less than Rs.10000 but a maximum of Rs.200000 or with both.

2nd proviso to Section 94

Enhanced penalty after previous conviction under proviso to Section 92

In case of accident causing death – Fine not less than Rs.35000/-

In case of accident causing serious bodily injury – Fine not less than Rs.10000/-

Section 95

Penalty for obstructing inspector:(a) Wilfully obstructs the inspector in discharge of his function.

Imprionment for a term which may extend to 6 months or with fine which may extend to Rs.10000 or with both.


(b) Failure to produce any registers/documents.(c) Concealing or preventing any worker in a factory from appearing before or being examined by an Inspector

96 Wrongful disclosure of results of analysis under Section 91

Imprionment extending to SIX months or with fine extending to Rs.10000/- or with both.

96A Contravention of Sections 41-B, 41-C and 41-H

Imprisonment extending to SEVEN years and fine upto Rs.200000.

Continuing Offence:Rs. 5000 everyday after conviction for the first failure or contravention.

PAYMENT OF BONUS ACT1965


28 Contravention of provisions of the Act and Rules or to comply with the requisitions made under the Act.

Imprisonment extending to SIX months or with fine extending to Rs.1000/- or with both.

THE INDUSTRIAL DISPUTES ACT1947


26 Penalty for illegal strikes and lockouts.

Imprisonment extending to ONE month and a fine extending to Rs.1000/- or with both.

27 Penalty for instigation Imprisonment for a term extending to SIX months or fine extending to Rs.1000/- or with both.

29 Penalty for giving Financial aid to illegal strikes or lock-outs

Imprisonment for a term extending to SIX months or fine extending to Rs.1000/- or both.

29 Penalty for breach of settlement or award.

Imprisonment for a term extending to SIX months or fine or both. Continuing offence:Rs.200 during everyday after first conviction.


30 Penalty for giving confidential Information

Imprisonment for a term of SIX months or with a fine extending to Rs.1000/- or with both.

30A Penalty for closure without notice

Imprisonment for a term extending to SIX months or with fine which may extend to Rs.5000/- or with both.

31 Contravention of Section 33

---------------------------------------Other contraventions:

Imprisonment for a term extending to SIX months or with a fine extending to Rs.1000/- or with both.-----------------------------------Fine extending to Rs.1000/-

PAYMENT OF GRATUITY ACT1972


9(1) For knowingly making any false statement or false representation

Imprisonment extending to SIX months or fine extending to Rs.10000/- or with both.

9(2) Contravention or default in complying with the provisions of this Act or any Rules or Order made there under.

Imprisonment for not less than THREE months but may extend to ONE year, or with a fine not less than Rs.10000/- but which may extend to Rs.20000/- or with both.

Proviso to Section 9(2)

Penalty for non-payment of Gratuity payable under this Act

Imprisonment for a period not less than SIX months but which may extend to TWO years.(Court has power to lessen the term of imprisonment or imposition of time.

WATER (PREVENTION AND CONTROL OF POLLUTION)

ACT, 1974


42 Destroying, removing, defacing of any notice or post/stake fixed in the ground by the Pollution Control Board

Imprisonment for a term which may extend to THREE months or with a fine which may extend to Rs.10000/- or with both.

Obstructing any person acting under the directions of the Pollution Control Board in performing his functions

Damaging any works or property belonging to the Pollution Control Board.

Failure to furnish any information required by the Pollution Control Board.

Failure to intimate the occurrence of any accident or other unforseen act or event to the PCB or other authorities.


42 Knowingly or wilfully providing any false statements in respect of which any information required to be provided under this Act. Imprisonment for a

term which may extend to THREE months or with a fine which may extend to Rs.10000/- or with both.

Knowingly or wilfully providing any false statements for obtaining consent order under this Act.

Knowingly or wilfully alters or interferes any monitoring device so as to prevent it from monitoring correctly for obtaining consent order under this Act.


43 Section 32(1)(c) – Order issued for immediately restraining or prohibiting from discharging any poisonous, noxious and polluting matter into the stream or well or from making insanitary use of the stream or well.

Imprisonment not less than ONE year and SIX months but may extend to FIVE years and with Fine.

Continuing Offence:Rs.5000 for everyday during which the default continues after the first conviction.

For continued failure beyond a period of ONE year after the date of conviction, Imprisonment for not less than TWO years but may extend upto SEVEN years.

Section 33(2) - Orders issued by the Court for restraining apprehended pollution of water in streams or wells.

Section 33A – Any directions issued by the Pollution Control Board.


41 Failure to comply with the directions under Section 20(2) or Section 20(3)

Imprisonment for a term which may extend to THREE months or fine which may extend to Rs.10000 or with both.

Continuing Offence:Rs.5000/- everyday during continuance of default after first conviction.

43 Contravention of provisions of Section 24 – Prohibition of use of stream, well for disposal of polluting matter.

Imprisonment for a term which shall not be less than ONE year and SIX months but may extend to SIX years with fine.


44 Contravention of Section 25Failure to obtain previous consent of PCB for establishment of any industry or bringing into use any new or altered outlet for discharge of sewage or make any new discharge of sewage.

Imprisonment for a term which shall not be less than ONE year and SIX months but may extend to SIX years with fine.

45 Second and Subsequent offence under Section 44

Imprisonment for a term not less than TWO years but which may extend to SEVEN years with fine.

45A Other penalties not provided elsewhere in the Act.

Imprisonment which may extend to THREE months or with a fine which may extend to Rs.10000/- or both. In case of continuing offence, Fine Rs.5000/- for everday after first conviction

AIR(PREVENTION AND CONTROL OF

POLLUTION) ACT, 1981


37 Failure to comply with the provisions of


Section 21 – To obtain consent of the PCB to establish or operate any industrial plant.

Section 22 – Emission of air pollutants in excess of the standards laid down by PCB.

Section 31A – Any directions given by PCB.

39 Other penalties not provided elsewhere in the Act

Imprisonment which may extend to THREE months or with a fine which may extend to Rs.10000/- or both. In case of continuing offence, Fine Rs.5000/- for everday after first conviction


38 Destroying, removing, defacing of any notice or post/stake fixed in the ground by the Pollution Control Board


Obstructing any person acting under the directions of the Pollution Control Board in performing his functions

Damaging any works or property belonging to the Pollution Control Board.

Failure to furnish any information required by the Pollution Control Board.

Failure to intimate the occurrence of any accident or other unforseen act or event to the PCB or other authorities.


38 Knowingly or wilfully providing any false statements in respect of which any information required to be provided under this Act. Imprisonment for a

term which may extend to THREE months or with a fine which may extend to Rs.10000/- or with both.

Knowingly or wilfully providing any false statements for obtaining consent order under this Act.

Knowingly or wilfully alters or interferes any monitoring device so as to prevent it from monitoring correctly for obtaining consent order under this Act.

ENVIRONMENT(PROTECTION) ACT


15 Penalty for contravention of the Provisions of the Act and the rules, orders and directors

Imprisonment for a term which may extend to FIVE years or with fine which may extend to Rs.100000/-

In case of continuing default, Rs.5000 everyday after the conviction from the first failure.

If failure continues beyond ONE year after the date of conviction, Imprisonment for a term which may extend to SEVEN years.

PUBLIC LIABILITY INSURANCE ACT, 1991


14 Penalty for contravention of Imprisonment for a term of not less than ONE year and SIX months but may extend to SIX years or with a fine which shall not be less than Rs.100000/- or with both.In case of second and subsequent default, Imprisonment for a term not less than TWO years but may extend to SEVEn years and with a fine not less than Rs.100000/-

Section 4(1) – To take insurance policies for handling hazardous process

Section 4(2) – TO renew the insurance policy from time to time before the expiry of the period of validity.

Section 4(2A) - Insurance taken/renewed shall not be less than the paid-up capital and more than the amount exceeding Rs.50 Crores.

Section 4(2C) - Payment towards environmental relief fund.

Sec 12 - Compliance of Direction of the Central Government Sec 12

THANK YOU!

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