Section 342 Prosecution of delinquent officers and members of company
- Chapter
- XX · Winding Up
- Amendments
- 2
- Last changed
- 21 December 2020
342. Prosecution of delinquent officers and members of company.—
(1) If it appears to the Tribunal in the course of a winding up by the Tribunal, that any person, who is or has been an officer, or any memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., of the company has been guilty of any offence in relation to the company, the Tribunal may, either on the application of any person interested in the winding up or suo motu, direct the liquidator to prosecute the offender or to refer the matter to the Registrar.
Text omitted by amendmentSub-sections (2), (3) and (4) omitted by Insolvency and Bankruptcy Code, 2016, s. 255, with effect from 15 November 2016
(5) When any prosecution is instituted under this section, it shall be the duty of the liquidator and of every person, who is or has been an officer and agent of the company to give all assistance in connection with the prosecution which he is reasonably able to give.
Explanation.—For the purposes of this sub-section, the expression “agent”, in relation to a company, shall include any banker or legal adviser of the company and any person employed by the company as auditor.
Text omitted by amendmentSub-section (6) omitted by Companies (Amendment) Act, 2020, s. 48, with effect from 21 December 2020