Can Corporate Directors Be Held Legally Liable for Criminal Fraud Committed by Employees?
An individual misappropriates company money, manipulates company documents or makes use of company property in order to commit fraud. One of the key issues regarding corporate director criminal liability for employee fraud in India is whether the director could be prosecuted solely based on the fact that the employee committed the act inside the company. Just being a company director does not mean automatic liability. Liability will depend on the applicable law, the position of the director and the connection between the act and the director. There are grounds for criminal liability if the individual was the one who: ● personally committed the act; ● intentionally helped to commit the act; ● authorised, consented to and connived at the act; or ● the statute provides him or her with liability. ...