A company commits an offence under section 138 of the Negotiable Instruments Act, 1881. Subject to the…
Section 141(1) extends liability to the company and a person who was both in charge of and responsible to it for the conduct of its business when it committed the section…
Choose your answer
A company commits an offence under section 138 of the Negotiable Instruments Act, 1881. Subject to the statutory provisos, which relationship to the company’s business triggers deemed liability under section 141(1)?
Answer and explanation
Correct answer C
Section 141(1) extends liability to the company and a person who was both in charge of and responsible to it for the conduct of its business when it committed the section 138 offence. The provisos govern defences and specified nominated directors.
Option feedback
Option A
Share ownership alone does not establish either required management predicate.
Option B
Advising the company does not by itself establish charge of and responsibility for its business.
Option C
Section 141(1) requires both predicates at the time the offence was committed.
Option D
Section 141(1) assesses the person’s role when the offence occurred.
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