1. Fundamental Principles of Company Law LLM2104
Madhavan. M M.E, LL.B
Department of Law
School of Legal Studies
CUTN -Thiruvarur
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CORPORATE CRIMINAL LIABILITY
2. Corporate criminal liability can be defined as a crime
which has been committed by individual or
association of individuals who for pursuing a common
purpose or make business gain in course of their
occupation commit such acts or omission which is
forbidden by law and with guilty mind where it is for
the benefit of the corporation or any individual out of
the association of individuals. Earlier in many
situations when the concept of holding a corporation
liable was not introduced there was not and
corporation held liable for any criminal act as the it is
an artificial legal person, so it could not be imprisoned
, and corporation not being natural person there was
absence of mens rea.
CORPORATE CRIMINAL LIABILITY
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3. The Doctrine of
Vicarious Liability
Doctrines established in Corporate Criminal Liabilit
The Doctrine
of
Identification
The Doctrine of
Collective Blindness The Doctrine of
Wilful Blindness
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The Doctrine of
Attribution
The Doctrine of Alter
Ego
4.
Section 53-Prohibition of shares at a discount.
Section 118(12)-Minutes of proceedings of
General Meeting, Meeting of Board of
Directors and other meetings and
resolutions passed by Postal Ballot.
Section 128(6)-Books of Account, etc, to be kept
Section 129(7)- Financial Statement.
Section 134- Financial Statement, Boards report,
Section 188(5)- Related Party transactions.
The concept of Corporate Criminal Liability has
been recognised under the Companies Act 2013
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5. Section 57-Punishment for personation of
Shareholder.
Section 58(6)- Refusal for registration and
appeal against refusal.
Section 182(4)- Prohibitions and restrictions
regarding Political Contributions.
Section 184(4)- Disclosure of Interest by Director.
Section 187(4)- Investments of the Company
to be held in own name.
Section 447- Punishment for fraud.
Corporate criminal liability in company law 2013
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6. Conclusion:
. In terms of corporate context in order to deter
crimes the state should induce the firms to take
policing measures.
. In case of professional assessment of the
corporation, the court should have the power to
appoint suitable person or persons to prepare
report on corporation.
. Stricter punishments need to be imposed like
corporate dissolution wherein the courts will be
able to see whether any reincorporation can
happen in cases where there is penalized
corporate. The concept of Sustainable
Development by Government bar its efforts.
