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Research Paper | Law | Volume 15 Issue 4, April 2026 | Pages: 605 - 609 | India
Corporate Criminal Liability Under the Companies Act, 2013
Abstract: The liability of corporations has taken centre stage in the discourse of new corporate governance. It is evident that it is not pointless to hold artificial things as corporations, to account for their crime, particularly because companies have become such an important part of the economic life. Previously, we had been accustomed to charging people with committing a crime, but with the emergence of multifaceted corporations, politicians had to go to the extent of making companies themselves responsible. One of the steps taken by India is the Companies Act of 2013. It strengthened and established the way through which companies and individuals in their companies should be punished in case of any illegal action. This article will explore how the concept of corporate criminal liability played out in the Companies Act, 2013. It de-jurisdictionalizes the wording of the law: what directors and key managers get dragged into, what the courts have already said when disagreements occur. To unravel, there is much. What is and is not considered a liability is defined by the courts and their views influence real-life results to companies and individuals being accused of crimes. Actual challenges to the implementation of these laws exist. Mens rea the intention or knowledge of wrongdoing is infamously difficult to demonstrate it when the mind is not a person, but a fiction before the law. The vicarious liability is an extra complexity that poses how responsibility goes all the way to senior level to the junior levels. Corporate crimes also face debate in their punishments, as corporations cannot be jailed. Another point that is highlighted in the paper is where oversight and compliance should be enhanced as well as where better governance can prevent incidences of crime before they occur. Lastly, although the Companies Act, 2013, introduced new tougher or more realistic rules and actions regarding the responsibility of holding companies accountable, there is still more work to be done. Court enforcement and clarity only play equally important roles compared with good laws to ensure that the corporations do not get away with breaking the law.
Keywords: Corporate Criminal Liability, Companies Act 2013, Corporate Governance, Mens Rea, Vicarious Liability, Directors? Liability, Compliance, Economic Offences
How to Cite?: Abhay Pandey, Dr. Bhavna Batra, "Corporate Criminal Liability Under the Companies Act, 2013", Volume 15 Issue 4, April 2026, International Journal of Science and Research (IJSR), Pages: 605-609, https://www.ijsr.net/getabstract.php?paperid=SR26406095902, DOI: https://dx.dx.doi.org/10.21275/SR26406095902