Section 36 of Companies Act 2013

Section 36 of Companies Act, 2013

Punishment for fraudulently inducing persons to invest money.

Any person who, either knowingly or recklessly makes any statement, promise or forecast which is false, deceptive or misleading, or deliberately conceals any material facts, to induce another person to enter into, or to offer to enter into,—

a.     any agreement for, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or

b.    any agreement, the purpose or the pretended purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities; or

c.     any agreement for, or with a view to obtaining credit facilities from any bank or financial institution, shall be liable for action under section 447.

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Section 36 of Companies Act, 1956

Effect of memorandum and articles.

(1) Subject to the provisions of this Act, the memorandum and articles shall, when registered, bind the company and the members thereof to the same extent as if they respectively had been signed by the company and by each member, and contained covenants on its and his part to observe all the provisions of the memorandum and of the articles.

(2) All money payable by any member to the company under the memorandum or articles shall be a debt due from him to the company.