(1) Where a person committing any offence, punishable under this Act or any rule or order made thereunder is a Company or an Association or a body of persons, whether incorporated or not every Director, Manager, Secretary, Agent or other officer or person concerned with the Management thereof, shall, unless he proved that the offence was committed without his knowledge or that he exercised all due deligence to prevent its commission, be deemed to be guilty of such offence.
Offences by companies:-
(2) Where an offence under this Act has been committed by a company registered under the Companies Act, 1956 every person who at the time of offence was committed, was incharge of, and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :
Provided that nothing in this sub-section render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due deligence to prevent the commission of such offence.
(3) Notwithstanding anything in sub-section (1), where an offence under this Act has been committed by a company and 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, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
EXPLANATION : For the purpose of this Section :-
(a) “Company” means any bodycorporate and includes a firm or other association of individuals and- 7
(b) “Director” in relation to a firm means a partner in the firm.
Suspension or cancellation of licence.