If in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement-
(a) which is false in any material particulars, knowing it to be false; or
(b) which omits any material fact, knowing it to be material,
he shall be liable under section 447.
Section 448 of the Companies Act, 2013 deals with punishment for false statements.
False Statements: This section pertains to any person who is found to have made or circulated false statements, reports, or accounts, either knowingly or recklessly, with an intention to deceive or defraud any member, creditor, or other person associated with the company.
Punishment: Individuals found guilty under this section are subject to imprisonment for a term which may extend to two years and a fine which shall not be less than fifty thousand rupees but may extend to five lakh rupees.
Liability of Officers: If the false statement was made by a company’s officer, such as a director, manager, or secretary, they are deemed to be guilty of the offense and shall be liable for punishment unless they can prove that they had reasonable grounds to believe that the statement was true.
Prosecution: Prosecution under this section requires prior approval from the Central Government or any authority specified by it.
In essence, Section 448 aims to deter individuals from making or circulating false statements, reports, or accounts in connection with a company, thereby ensuring transparency and integrity in financial reporting and dealings.