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What is Personation of Shareholder? Meaning and Punishment

Personation of anybody for any legal purposes can be considered as a crime. It is nevertheless an immoral act by the person who does it.

The acts of personation with an intention to defraud someone is increasing day-by-day with the latest digital mediums. Penal provisions under law is also evolving with time to counterattack these crimes.

What is Personation of a Shareholder?

When a person pretends to be some other person, it's called personation. When a person pretends to be a shareholder of a company, when actually he is not, it's called personation of that shareholder.

Here, the important thing to note is, the personation is done with an intention to deceive or defraud in the name of the shareholder.





Company Law

Section 57 of the Companies Act, 2013 prescribes the provisions for personation of shareholder of a company.

Under section 57, personation of shareholder happens:

if any person deceitfully personates as an owner of
- any security or interest in a company, or
- any share warrant or coupon,
and thereby obtains or attempts to obtain
- any such security or interest or
- any such share warrant or coupon,
or receives or attempts to receive
- any money due to any such owner.

Punishment

The person accused of personating a shareholder, if proved under the due course of law, shall be punishable with —
• Imprisonment: Minimum of 1 year and a Maximum of 3 years; and
• Fine: Minimum of Rs. 1 lakh and a Maximum of Rs. 5 lakh.



Comments

  1. Vedhika Mani21 July, 2018

    Impersonation of any shareholder is a ridiculous crime. The impersonator should be punished severely depending upon the extent of loss (both monetary and goodwill) caused to the concerned shareholder.

    ReplyDelete

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