Responsibilities of Promoters (Liabilities of Promoters)
Some of the major responsibilities of the promoter are as follows
1. Liability for giving false information for amalgamation – Sometimes after the amalgamation of the company it is proved that the amalgamation of the company has taken place due to any of the following reasons (i) any false or false information or presentation of facts .
(11) concealment or non-disclosure of any material fact in any document submitted; (iv) on account of any other fraudulent act. In such case the promoter of the company shall be liable for action under section 447. This
Under the section, there is a provision to punish the guilty with imprisonment and with fine. 2. Liability in case of misleading statement – Sometimes a person subscribes to the securities of that company by relying on a misleading statement. Due to that he (subscriber) has to suffer loss. In such a case, the promoter shall be liable to compensate the loss of each person. who has suffered any loss on account of such misleading statement. His liability shall be in addition to the ordinary punishment under this Act.
3. Liability for failure to disclose each item of special work – Sometimes a special business is also done in the general meeting of the company. In such a case, a statement of important facts for each item of particular business/work to be carried on in that meeting should be attached to the notice of that meeting. If there is a default in complying with this provision, every promoter and other defaulting officer of the company shall be fined up to ₹ 50,000 or up to five times the amount of benefit to such promoter or the defaulting rights or their relatives. .
4. Liability for failure to return money or property.—Sometimes during scrutiny/investigation or in the course of implementation of a scheme for rehabilitation of a sick company, the Tribunal finds that the company or any promoter connected with the operation of a sick company has has committed the following offenses or acts (i) wrongfully used any amount or property of that company
(ii) he is guilty of misconduct or corruption or breach of trust. In such a case, the Tribunal may, by order, direct the promoter to return the amount or property or direct the promoter to donate such amount as may be deemed fit by way of compensation to the sick company or the person entitled thereto. could.