Photo of S Vivek

Partner in the Capital Markets Practice at the Mumbai Office of Cyril Amarchand Mangaldas. S.Vivek focusses on initial public offers, rights issues, qualified institutions placement and ADR offerings. He can be reached at s.vivek@cyrilshroff.com.

Superior Orders Defence - Corporate Fraud

The past few years have seen a marked increase in regulatory investigations and enforcement action into fraud. This increased scrutiny brings into focus the liability of the individuals involved in the fraud and the extent to which such individuals are liable.

Typically, when the company has committed fraud, persons who are responsible for the actions of the company – the ‘directing mind and will– are held liable. In contrast, where a fraud is committed on the company and/or its shareholders, it involves identifying both, the officers at whose behest, or for whose benefit, such actions were undertaken, as well as persons who executed the fraud. 
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