Section 439 of CA 2013 : Section 439: Offences To Be Non-Cognizable

Explanation using Example

Imagine a scenario where a company's officer has been accused of committing fraud by manipulating the company's financial statements. Under Section 439(1) of the Companies Act, 2013, this offence would be treated as non-cognizable, meaning the police cannot arrest the accused without a warrant and cannot start an investigation without the court's permission.

Now, if a shareholder of the company becomes aware of this fraud, they can file a complaint in writing as per Section 439(2). Once the complaint is filed, the court can take cognizance of the offe...

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