Section 251 of Companies Act, 2013 – Fraudulent application for removal of name

  • Updated Till : October 13, 2024

SECTION 251. FRAUDULENT APPLICATION FOR REMOVAL OF NAME

[Effective from 26th December 2016]

(1) Where it is found that an application by a company under sub-section (2) of section 248 has been made with the object of evading the liabilities of the company or with the intention to deceive the creditors or to defraud any other persons, the persons in charge of the management of the company shall, notwithstanding that the company has been notified as dissolved—

(a)   be jointly and severally liable to any person or persons who had incurred loss or damage as a result of the company being notified as dissolved; and

(b)   be punishable for fraud in the manner as provided in section 447.

(2) Without prejudice to the provisions contained in sub-section (1), the Registrar may also recommend prosecution of the persons responsible for the filing of an application under sub-section (2) of section 248.

One response to “Section 251 of Companies Act, 2013 – Fraudulent application for removal of name”

  1. Maik Layne says:

    Hello corporatelawreporter.com administrator, You always provide great examples and real-world applications.

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