Companies Act Section 75: Damages for fraud

THE COMPANIES ACT, 2013

ACT NO. 18 OF 2013

COMPANIES ACT 2013 SECTION 75 CHAPTER V

ACCEPTANCE OF DEPOSITS BY COMPANIES

 

Damages for fraud.—(1) Where a company fails to repay the deposit or part thereof or any interest thereon referred to in section 74 within the time specified in sub-section (1) of that section or such further time as may be allowed by the Tribunal under sub-section (2) of that section, and it is proved that the deposits had been accepted with intent to defraud the depositors or for any fraudulent purpose, every officer of the company who was responsible for the acceptance of such deposit shall, without prejudice to the provisions contained in subsection (3) of that section and liability under section 447, be personally responsible, without any limitation of liability, for all or any of the losses or damages that may have been incurred by the depositors.

(2) Any suit, proceedings or other action may be taken by any person, group of persons or any association of persons who had incurred any loss as a result of the failure of the company to repay the deposits or part thereof or any interest thereon.

Tags: companies act 2013 section 75 CHAPTER V, companies act 2013, companies act chapter v, company act section 75, damages for fraud.



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