Liability of officers in respect of offences committed prior to merger, amalgamation, etc
Section 240 of the Companies Act, 2013 deals with liability of officers in respect of offences committed prior to merger, amalgamation, etc. Notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this Act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisition. The Act came into force on 01 Apr 2014.
Notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this Act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisition.
Section 240, The Companies Act, 2013 (Act 18 of 2013).
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… (2) The Director General shall have all the powers as are conferred upon the Commission under sub-section (2) of section 36. (3) Without prejudice to the provisions of sub-section (2), sections 240 and 240A of the Companies Act, 1956 (1 of 1956), so far as may be, shall apply to an investigation made by the Director General or any other person investigating under his authority, as the apply to an inspector appointed under that Act. Explanation. – For the purposes of this section, – (a) the words "the …
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… (2) The Director General shall have all the powers as are conferred upon the Commission under sub-section (2) of section 36. (3) Without prejudice to the provisions of sub-section (2), sections 240 and 240A of the Companies Act, 1956 (1 of 1956), so far as may be, shall apply to an investigation made by the Director General or any other person investigating under his authority, as the apply to an inspector appointed under that Act. Explanation. – For the purposes of this section, – (a) the words "the …
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… (2) The Director General shall have all the powers as are conferred upon the Commission under sub-section (2) of section 36. (3) Without prejudice to the provisions of sub-section (2), sections 240 and 240A of the Companies Act, 1956 (1 of 1956), so far as may be, shall apply to an investigation made by the Director General or any other person investigating under his authority, as the apply to an inspector appointed under that Act. Explanation. – For the purposes of this section, – (a) the words "the …
Made under this section, and citing it
5 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- G.S.R. NO. 401(E) Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2022 Dated 30.05.2022Rule 2022
- G.S.R. 93(E)-Companies (compromises, arrangements and amalgamations) Amendment Rules 2021Rule 2021
- Companies (Compromises,Arrangments and Amalgamtions) 2nd Amdt Rules 2020Rule 2020
- Commencement notification dated 07.12.2016Notification 2016
- Companies (Compromises, Arrangements and Amalgamations) Rules, 2016Rule 2016
Questions about Section 240
What does Section 240 of the Companies Act deal with?
Section 240 of the Companies Act is headed "Liability of officers in respect of offences committed prior to merger, amalgamation, etc". Notwithstanding anything in any other law for the time being in force, the liability in respect of offences committed under this Act by the officers in default, of the transferor company prior to its merger, amalgamation or acquisition shall continue after such merger, amalgamation or acquisition.
How do I find court cases under Section 240 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 240, section 240 Companies Act, section 240 of the Companies Act. People searching for it also type companies act section 230 to 240 and section 240 companies act 2014. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 240 of the Companies Act, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 5: most recently G.S.R. NO. 401(E) Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2022 Dated 30.05.2022 (2022), then G.S.R. 93(E)-Companies (compromises, arrangements and amalgamations) Amendment Rules 2021 (2021), and 3 more.
When did Section 240 of the Companies Act come into force?
Section 240 of the Companies Act, cited as Companies Act 240, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.