Contravention by companies [Section 42] - FEMA Ready Reckoner - FEMA

Contravention by companies Section 42(1) Provides Jointly and several liability of the company and person in charge Every person who was in charge or responsible to the company for the conducting business of the company shall be deemed to be guilty of the contravention and shall be the liable to be proceeded against and punished accordingly:- if there is contravention of any provisions of the act or any rule by the direction or order made thereunder is a company. Exception :- If any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised due diligence to prevent such contravention. Section 42(2) where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company, shall also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly, if :- it is proved that the contravention has taken place with the consent or connivance of, or is attri-butable to any neglect on the part of; By any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer Explanation. For the purposes of this section company means any body corporate and includes a firm or other association of individuals; and director , in relation to a firm, means a partner in the firm.