alleryStart learning →Under s.42, he escapes liability if he proves no knowledge or
ADue diligence to prevent it
BAbsence on long leave
CResigning soon after
DHolding no company shares
Answer & Solution
Correct answer: A. Due diligence to prevent it
The proviso to s.42(1) frees him if the contravention was without his knowledge or he exercised all due diligence to prevent it.
Keep practising Foreign Exchange Management Act 1999
Browse all Foreign Exchange Management Act 1999 questions for CA Final, or explore more Law topics.
Related questions
Notifications suspending the Act's operation are laid before Parliament for a total periodFEMA repealed which earlier Act?For s.42, a director in relation to a firm meansUnder s.42, a person in charge of a company at the time of contravention isWho gives general directions to RBI under FEMA?Under s.37(3), enforcement officers exercise powers like those ofUnder s.37, investigation of a s.13 contravention is by officers not belowUnder s.36, the Central Government establishes the