Section 32 of The Apprentices Act, 1961
- (1)If the person committing an offence under this Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of 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 contained in this sub-section shall render any such person liable to such punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
- (2)Notwithstanding anything contained 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 negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary, or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.--For the purposes of this section,--
- (a)"company" means a body corporate and includes a firm or other association of individuals; and
- (b)"director" in relation to a firm means a partner in the firm
Summary
- When a company breaks the law under this Act, both the company itself and the people in charge of running it are held responsible.
- A person in charge can avoid punishment if they can prove they did not know about the offence or that they tried their best to prevent it.
- If it is proven that a specific director, manager, or secretary allowed the offence to happen or was careless, that specific officer is also deemed guilty.
- For the purposes of this law, a "company" includes partnerships, and a "director" includes a partner in a firm.
Practical examples
FAQ
1. Can a business partner be held responsible like a company director?
Yes, the law specifically says a "director" in relation to a firm means a partner in the firm.
2. Is a manager automatically guilty if the company breaks a rule?
They are generally held responsible unless they can prove they did not know about it or tried hard to prevent it.
3. What if a secretary knew about the offence and helped hide it?
If they consented to or helped with the offence, that secretary will also be deemed guilty and punished.
Test yourself
Q1.Under Section 32 of The Apprentices Act, 1961, if a company commits an offence, who is initially deemed guilty alongside the company?
Q2.Under Section 32 of The Apprentices Act, 1961, how can a person in charge of a company escape liability for an offence committed by the company?
Q3.Under Section 32 of The Apprentices Act, 1961, what does the term "company" include for the purposes of this section?
Q4.Under Section 32 of The Apprentices Act, 1961, if it is proven that an offence happened because of the negligence of a specific company secretary, what is the result?