Section 242 - Prosecution. - Companies Act, 1956

Prosecution. 242. (1) If, from any report made under section 241, it appears to the Central Government that any person has, in relation to the company or in relation to any other body corporate, [1] [* * *] whose affairs have been investigated by virtue of section 239, been guilty of any offence for which he is crimi nally liable, the Central Government may, after taking such legal advice as it thinks fit, prosecute such person for the offence; and it shall be the duty of [2] [all officers and other employees] and [3] [agents of the company or body corporate], as the case may be (other than the accused in the proceedings), to give the Central Government all assistance in connection with the prosecution which they are reasonably able to give. (2) Sub-section (6) of section 240 shall apply for the purposes of this section, as it applies for the purposes of that section. -------------------------------------- Notes:- [1] Omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, as provisions relating to managing agents, secretaries and treasures, or associate of a managing agent or secretaries and treasure had become redundant after abolition of system by Act 17 of 1969. [2] Substituted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 77, for "all officers". [3] Substituted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [ Substituted for agents of the company, body corporate, managing agent, secretaries and treasures, or associate by the Companies (Amendment) Act, 2000, w.e.f. 13-12-200. ].