Section 30 of The Bureau of Indian Standards Act, 2016.
Where an offence under this Act has been committed by a company, every director, manager, secretary or other officer of the company who, at the time the offence was committed, was in charge of and was responsible to the company for the conduct of the business of the company, or authorised representative 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, irrespective of the fact that the offence has been committed with or without the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, or authorised representative of the company. 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
- This provision ensures that company leaders are held personally responsible when their company commits a legal offence.
- Every director, manager, or secretary who was in charge of the business at the time of the offence is deemed guilty alongside the company.
- These corporate officers face legal action regardless of whether they explicitly consented to the crime or if it happened due to their neglect.
- The law defines a company broadly to include corporate bodies, firms, or other associations of individuals.
- A director is also explicitly defined to include a partner in a firm.
Practical examples
FAQ
1. Does Section 30 of The Bureau of Indian Standards Act, 2016 punish the company or its managers?
Section 30 of the 2016 Indian Standards law punishes both the company itself and the individuals who were in charge of and responsible for the business at the time the offence occurred.
2. If my company breaks the law without my direct consent, am I still guilty under Section 30 of the BIS Act?
Yes, Section 30 of the BIS Act explicitly states that officers in charge are liable irrespective of whether the offence was committed with their consent or was attributable to their neglect.
3. Are partnership firms covered by the rules in Section 30 of this standardization legislation?
Yes, Section 30 of this standardization legislation defines a company to include a firm, and it defines a director to include a partner in that firm.
Test yourself
Q1.Who is held responsible when a company commits an offence?
Q2.What happens if an offence is committed by a company due to a manager's neglect, rather than their active consent?
Q3.How does the provision define a "director" in the context of a firm?
Q4.Which entities are included in the definition of a "company" under this provision?