Section 261 — Duty of officers to assist the inspector

(1) It shall be the duty of
all officers and other employees and agents of the company and all persons who
have dealings with the company to give to the inspector all assistance in connection
with the investigation.

(2) Any such person who makes default in complying with the
provisions of sub -section (1) shall, without prejudice to any other liability, be
publishable in respect of each offence with imprisonment of either description for
a term which may extend to two years and shall also be liable to a f ine which may
extend to one million rupees.
(3) In this section—

(a) the expression “agents”, in relation to any company, body corporate
or person, includes the bankers, legal advisers and auditors of the
company;

(b) the expression “officer”, in relation to any company or body
corporate, include any trustee for the debenture-holders of such
company or body corporate; and

(c) any reference to officers and other employees and agents shall be
construed as a reference to past as well as present officers and other
employees and agents, as the case may be.