Companies Act, 2013

Section 190

Punishment for false statements in prospectus

⚡ Quick Answer Reference: Section 190 Companies Act

Provision: Section 190 of Companies Act
Act: Companies Act, 2013
Classification: corporate
Jurisdiction: India
Liability / Punishment: Imprisonment for a term which may extend to 5 years, or with fine which shall not be less than twenty-five thousand rupees but which may extend to two lakh rupees, or with both.

Statutory Content

What does Section 190 of Companies Act say?

If any person makes or circulates any false statement or representation in any prospectus or in any advertisement issued by a company, or if any person makes or circulates any statement or representation in any prospectus or in any advertisement issued by a company which is likely to mislead the public, he shall be liable to make good the loss or damage caused to the company.

Indian StandardSection 190, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 190 (India)

Court Pleading StandardSection 190 of the Companies Act, 2013

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Criminal Liability

Punishment under Section 190 Companies Act

Imprisonment for a term which may extend to 5 years, or with fine which shall not be less than twenty-five thousand rupees but which may extend to two lakh rupees, or with both.

Common Questions about Section 190 Companies Act

What is Section 190 of Companies Act?

Section 190 of the Companies Act, 2013 (Companies Act) defines and regulates "Punishment for false statements in prospectus". The section states: If any person makes or circulates any false statement or representation in any prospectus or in any advertisement issued by a company, or if any person makes or circulates any stat...

What is the punishment under Section 190 of Companies Act?

Under Section 190 of Companies Act, the prescribed liability/punishment is: Imprisonment for a term which may extend to 5 years, or with fine which shall not be less than twenty-five thousand rupees but which may extend to two lakh rupees, or with both.

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