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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Business Ethics, Code of Conduct and Anti-Bribery

Meera, a sales executive of Sagar Foods Ltd (incorporated in India), is alleged to have promised an undue advantage to a government officer to retain a supply contract for the company. She has not yet been prosecuted. What is the position as to the company's exposure under Section 9?

The offence is treated as committed whether or not Meera has been prosecuted, and because she is an employee she is presumed to have performed services on the company's behalf unless the contrary is proved. So the company's exposure does not await her conviction.

  1. AThe company cannot be proceeded against until Meera is convicted
  2. BThe offence by Meera is treated as committed whether or not she has been prosecuted, and as an employee she is presumed to have acted on the company's behalf unless the contrary is provedCorrect
  3. CThe company is liable only if the contract was actually retained
  4. DThe employee presumption applies only to directors

Explanation

Section 9(2) says a person is said to give or promise undue advantage if alleged to have committed the offence under section 8, whether or not prosecuted. Explanation 3 presumes an employee performed services on behalf of the organisation unless the contrary is proved. Option A is wrong because prosecution is not a precondition, and option C is wrong because a promise to give with the required intent suffices.

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