Companies Act Section 240 — Liability of officers in respect of offences committed prior to merger, amalgamation, etc

CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS

Commercial / Corporate

Summary

The liability of officers in default of a transferor company for offences committed under this Act before the company undergoes a merger, amalgamation, or acquisition will continue to exist even after that merger, amalgamation, or acquisition takes place. This applies regardless of what any other current law might say.

Official Text

Notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this Act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisition.