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If the person committing the offence is a company, every person who, at the time
offence was committed, was in charge of, and responsible to the company for the
conduct of the business of the company shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished.
If a
person proves that the offence was committed without his knowledge, or that he
had exercised due diligence to prevent the commission of such offence, he shall
not be punishable.
Where a person is nominated as a Director of
a company by virtue of his holding any office or employment in the Central Government
or State Government or a financial Corporation owned or controlled by the Central
Government or State Government, he shall not be liable for prosecution.
Where any offence has been committed by a Company and f it is proved that the
offence has been committed with the consent or connivance of, or is attributable
to, any neglect on the part of any director, manager, secretary, or other officer
of the Company, such person shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
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