A Discussion on the Criminal Responsibility of Directors under Company Law

  • Maniratnam Bhati
  • Show Author Details
  • Maniratnam Bhati

    Advocate at Bar Council of Delhi, India

  • img Save PDF


The directors have a duty to act honestly and protect the integrity of the fiduciary relationship. The board of directors could, however, occasionally operate outside of its authority or pretend to represent the company's autonomous legal organisation. They also serve as the company's guiding minds, and any illegal behaviour will be held accountable to them. In order to ensure that the director is held accountable for their activities, certain clauses must be included. The author of this paper discusses the necessity of including provisions for a director's criminal liability as well as provisions under the company law that subject directors to criminal liability and the effects of the decriminalisation of the companies act as a result of the "Companies (Amendment) Act 2020." The adjustment is rejected by the author because it defeats the purpose of establishing punitive provisions and might have a negative impact on the Company's long-term operations.


Research Paper


International Journal of Legal Science and Innovation, Volume 5, Issue 1, Page 40 - 50

DOI: https://doij.org/10.10000/IJLSI.111537

Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


Copyright © IJLSI 2021