Company
Company means any corporate body and includes a firm or other association of individuals.
Director
Director means a partner in the firm but excludes nominated, honorary or Government nominated directors.
Offense by Companies
Section 49 of the LM Act, 2009
Liability of a Company
A company, firm and association of individuals will be treated as a person who will be held liable for any offense committed in respect of the Legal Metrology act, 2009 and the Rules made thereunder.Who will be liable for any offense committed by a company
Section 49(1)
1. (a)The person who has been nominated by the company, or
(b) Where no person has been nominated, every person in charge and responsible to the company for conduct of its business, and
2. the company.
Nomination of a director
Section 49(2)
- A company may authorize any of its Directors to exercise any power to prevent commission of an offense by the Company.
- A notice communicating such authorization should be sent to the Director as well as Controller of Legal Metrology of the concerned State. The written consent of the authorized Director should be enclosed with the notice.
- Different persons may be nominated for different branches, establishments or units.
The nomination shall remain valid, until
- A cancellation notice has been sent by the Company.
- An intimation has been sent that the nominated person ceases to be a director of the company.
- The nominated director requests the Director and controller for cancellation of his nomination under intimation to the company.
Rule 29 of the LM (General) Rules, 2011
Every company shall inform the Director or the concerned Controller or his authorized officer, by a notice in duplicate, in the format specified in Thirteenth Schedule. It should contain the name and address of the Director, who has been nominated by it to be in-charge of and responsible to the company for the conduct of the business of the company or any establishment, branch or unit thereof.
This provision is in sharp contrast to Section 49(2) of the Act, the word used being "may" there instead of "shall" here. Obviously, the provision of the Act will prevail.
Liability of other officers of the company
Section 49(4)
Where an offense is committed by a company, and it is found that the offense has been committed with the consent or connivance of any official or due to his negligence, he may be held liable even if he is not the nominated director.
Liability of the company itself
Section 49 (5) and (7)
When an offense has been committed by a company and the offense has not been compounded and the company is prosecuted before a Court of Law, the Court may order publication in a newspaper - name and place of the company, nature of the contravention, the fact that the company has been convicted and other details. The expense of such publication will be realized from the company as fine.
