CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit
Himalaya Textiles Ltd, a company, is prosecuted for an offence under the Occupational Safety, Health and Working Conditions Code, 2020. The prosecution proves that the offence occurred because of neglect on the part of the company secretary, Ms Kavita Rao, in ensuring compliance. Under the Code's provision on offences by companies, what is her position?
Ms Rao can be held guilty and punished. Section 109(2) of the OSH Code deems any director, manager, company secretary or other officer guilty where the company's offence is proved to be attributable to that person's consent, connivance or neglect.
- AShe can be held guilty and punished, as the Code expressly names the company secretary among officers liable for consent, connivance or neglectCorrect
- BShe cannot be held liable because only directors can be punished for company offences
- CShe is liable only if she was a director of the company
- DShe is liable only if the company has already been convicted and fined
Explanation
Section 109(2) of the OSH Code provides that where an offence by a company is proved to be committed with the consent or connivance of, or is attributable to neglect on the part of, any director, manager, company secretary or other officer, that person is deemed guilty and can be punished. The company secretary is named expressly, so the option limiting liability to directors is wrong.
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