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The Companies Act, 1956

Management and Administration (146 to 251)

Section 242 Prosecution

Section 242 Prosecution

(1) If, from any report made under section 24 it appears to the Central Government that any person has, in relation to the company or in relation to any other body corporate whose affairs have been investigated by virtue of section 239, been guilty of any offence for which he is criminally liable, the Central Government may, after taking such legal advice as it thinks fit, prosecute such person for the offence; and it shall be the duty of all officers and other employees and agents of the company, body corporate as the case may be (other than the accused in the proceedings) to give the Central Government , all assistance in connection with the prosecution which they are reasonably able to give.

(2) Sub-section (6) of section 240 shall apply for the purposes of this section. as it applies for the purposes of that section.