Companies Act Section 342 — Prosecution of delinquent officers and members of company
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) states that if, during a winding up of a company by the Tribunal, it appears that any person who is or has been an officer, or any member, of the company has committed an offence related to the company, the Tribunal may direct the liquidator to prosecute that person or refer the matter to the Registrar. This direction can be made either on the application of any person interested in the winding up or on the Tribunal's own motion.
Sub-section (5) provides that when a prosecution is instituted under this section, the liquidator and every person who is or has been an officer and agent of the company must give all assistance in connection with the prosecution that they are reasonably able to give.
The Explanation clarifies that for the purposes of sub-section (5), the term "agent" in relation to a company includes any banker or legal adviser of the company and any person employed by the company as auditor.
Official Text
(1) If it appears to the Tribunal in the course of a winding up by the Tribunal, that any person, who is or has been an officer, or any member, of the company has been guilty of any offence in relation to the company, the Tribunal may, either on the application of any person interested in the winding up or suo motu, direct the liquidator to prosecute the offender or to refer the matter to the Registrar. 1* * * * *
(5) When any prosecution is instituted under this section, it shall be the duty of the liquidator and of every person, who is or has been an officer and agent of the company to give all assistance in connection with the prosecution which he is reasonably able to give.
Explanation.—For the purposes of this sub-section, the expression “agent”, in relation to a company, shall include any banker or legal adviser of the company and any person employed by the company as auditor. 2* * * * *