Fraud under companies act, 2013
MEANING
Section 447 of the company act defines fraud as follows:
Fraud concerning affairs of a company or anybody corporate include
Committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether there is any wrongful gain or wrongful loss.
HOW IT IS DIFFERENT FROM COMPANIES ACT 1956?
Under the Companies Act, 1956 there was no one unified section that dealt with fraud or prescription of penalties. However, the Companies Act, 2013 overcame the same. It specifically defines fraud under section 447 of the act and the same is referred to in various places in the Act. For example, If the promoters have wrongfully published any information under section 34 of the Act, they will be held guilty for fraud under section 447. By specifying punishment in one section and making its reference in other sections of the act, the act tries to ensure more unity.?
USE OF SECTION 447 UNDER VARIOUS OTHER SECTIONS OF THE ACT
Company Act, 2013 defines fraud under section 447 and the same is referred under various other sections of the Act.
领英推荐
S. No.SectionNature of Violation1.7Incorporation of company28Charitable companies334Criminal liability for misstatement in prospectus436Punishment for fraudulently inducing persons to invest money538Punishment for personation for acquisition etc of securities.646Certificate of shares756Transfer and transmission of securities866Reduction of share capital975Damage for fraud1076APunishment for contravention of section 73 or section 761186Punishment for wilfully furnishing any false or incorrect information1290Register of Significant beneficial owners in a company13140Removal, the resignation of auditors, and giving of special notice.14206Power to call for information, inspect books and conduct inquiries15212Investigation into affairs of company by Serious Fraud Investigation Office16213Investigation into the company’s affairs in other cases17229Penalty for furnishing false statement, mutilation, destruction of documents18251Fraudulent application for removal of name19339Liability for fraudulent conduct of business20448Punishment for false statement
INGREDIENT OF FRAUD
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise.?AKGVG & Associates?does not intend to advertise its services through this.
Posted by:
CS Neetu Saini
AKGVG & Associates