CA Inter P2 · Chapter 5 · Question 4 of 10
A company accepted deposits with intent to defraud the depositors. Under section 75, every officer of the company responsible for accepting such deposits is:
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Reveal answer & explanation
Correct answer: C) Personally responsible, without any limitation of liability, for all or any of the losses or damages incurred by the depositors
Explanation
Section 75(1) provides that where a company fails to repay a deposit and it is proved that the deposit was accepted with intent to defraud, or for a fraudulent purpose, the officers responsible are liable. Every officer responsible for the acceptance is personally responsible, without limitation of liability, for the depositors' losses, in addition to liability under section 447.
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