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TMI BlogForm in which sections 539 to 544 of Act are to apply to cases where an application is made under section 397 or 398X X X X Extracts X X X X X X X X Extracts X X X X ..... or (b) makes, or is privy to the making of, any false or fraudulent entry in any register, books of account or document belonging to the company, he shall be punishable with imprisonment for a term which may extend to seven years, and shall also be liable to fine. 540. Penalty for frauds by officers.-- If any person, being at the time of the commission of the alleged offence, an officer of a company in respect of which the [1][Tribunal] subsequently makes an order under section 397 or 398,-- (a) has, by false pretences or by means of any other fraud, induced any person to give credit to the company; (b) with intent to defraud creditors of the company, has made or caused to be made any gift or transfer of or charge on, or has caused o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries made from day to day in sufficient detail of all cash received and all cash paid; and (b) where the business of the company has involved dealings in goods, statements of the annual stock takings and (except in the case of goods sold by way of ordinary retail trade) of all goods sold and purchased showing the goods and the buyers and sellers thereof in sufficient detail to enable those goods and those buyers and sellers to be identified. 542. Liability for fraudulent conduct of business.-- (1) If in the course of the proceedings on an application made to the [3][Tribunal] under section 397 or 398 in respect of a company, it appears that any business of the company has been carried on with intent to defraud creditors of the company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding consideration by way of marriage) given in good faith and without notice of any of the matters on the ground of which the declaration is made. (3) Where any business of a company is carried on with such intent or for such purpose as is mentioned in sub-section (1), every person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to five thousand rupees[9], or with both. (4) This section shall apply, notwithstanding that the person concerned may be criminally liable in respect of the matter on the ground of which the declaration is to be made. 543. Power of [10][Tribunal] to assess damages ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration under section 542 or pass an order under section 543, as the case may be, in respect of any person who is a partner in that firm or a director of that body corporate. ----------------------------------------- Notes:- [1] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Earlier the quoted words were substituted for "Court" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [2] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Earlier the quoted words were substituted for "Court" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [3] Substituted for "Company Law Board" by the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be notified. Earlier the quoted words were substituted for "Court" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [11] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Earlier the quoted words were substituted for "Court" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [12] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Earlier the quoted words were substituted for "Court" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [13] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Earlier the quoted words were su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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