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Which statements about a company's offence under section 138 of the Negotiable Instruments Act, 1881…

Section 141(1) covers the company and people in charge of and responsible for its business at the time of the offence. A person otherwise liable under that subsection may…

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Which statements about a company's offence under section 138 of the Negotiable Instruments Act, 1881 are accurate under section 141?
I. Subject to the statutory safeguards, the company and each person in charge of and responsible for its business when the offence occurred are deemed guilty.
II. A director nominated by virtue of holding office or employment in the Central or State Government is exempt from prosecution under this chapter.
III. A director, manager, secretary or other officer is deemed guilty if the offence is proved to have occurred with their consent or connivance, or to be attributable to their neglect.

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Answer and explanation

Correct answer D

Section 141(1) covers the company and people in charge of and responsible for its business at the time of the offence. A person otherwise liable under that subsection may prove lack of knowledge or all due diligence. The second proviso exempts directors nominated by virtue of qualifying government office or employment. Section 141(2) separately covers officers whose consent, connivance or neglect is proved.

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Option A

The general deeming rule is accurate, and both the nomination exemption and officer-fault rule also apply.

Option B

The deeming rule and exemption are accurate. The separate officer-fault rule also applies.

Option C

The deeming rule and officer-fault rule are accurate. The government nomination exemption also applies.

Option D

Section 141 contains the general deeming rule, the government nominee exemption and the officer-fault rule.

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