Page 14 - DCOM106_COMPANY_LAW

Unit 1: Nature of the Companies Act, 1956

Officer Who is in Default: Section 5 provides that for the purpose of any provision in this Notes
Act which enacts that an officer of the company who is in default shall be liable to any
punishment or penalty, whether by way of imprisonment, fine or otherwise, the expression
‘officer who is in default’ means all the following officers of the company, namely:
(i) The managing director or managing directors;

(ii) The whole time director or directors;
(iii) The manager;
(iv) The secretary;
(v) Any person in accordance with whose directions or instructions the board of directors
of the company is accustomed to act;
(vi) Any person charged by the board of directors with the responsibility of complying
with any provision, provided the person so charged has given his consent in this
behalf to the board of directors;
(vii) Where any company does not have any of the officers specified in clauses (a) to (c),
any director or directors who may be specified by the board of directors in this
behalf or where no director is so specified, all the directors.

(viii) Where the board of directors exercises any power under clause (f) or clause (g), it
shall, within 30 days of the exercise of such powers, file with the Registrar a return
in the prescribed form.

Self Assessment

8. The provisions of the Act relating to the formation of a company are discussed in parts
................................. of the act.
(i) II to IV (ii) III to IV

(iii) Parts I to II (iv) Parts IV to V
9. Property of the company belongs to ....................................
(i) Company (ii) Shareholders

(iii) Members (iv) Promoters
10. In the case of company, audit is ......................................
(i) Compulsory (ii) Optional
(iii) Situational (iv) None of the above
11. The companies which are formed under special Act are called as ..................................

(i) Chartered Companies (ii) Statutory Companies
(iii) Registered Companies (iv) None of these

LOVELY PROFESSIONAL UNIVERSITY 9