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Personation of Shareholder

Personation of anybody for any legal purposes can be considered as a crime and it is nevertheless an immoral act by the person who does it. Personation acts are increasing day-by-day and as such penal provisions under law is a must thing in this regard.

What is Personation of a Shareholder?

When a person deceitfully personates as an owner of any security or interest in a company, or of any share warrant or coupon, and then obtains or attempts to obtain any such security/ interest/share warrant or coupon, or receives or attempts to receive any money due to any such owner, this act by that person will lead to "personation of that owner".

Provisions in companies act 2013 ("the Act")
 
Section 57 of the Companies Act 2013 prescribes provisions for personation of a Shareholder of a Company. (Earlier similar provisions were prescribed under section 116 of the companies act 1956.)

Penalty

The said section of the Act,  prescribes the following punishment/penalty for a person who personates a shareholder.
  • imprisonment - Min. 1 year, Max. 3 years; and 
  • fine - Min. Rs. 1 lakh Max. five lakh rupees.
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