Sections 443 to 445 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 443 to 445 deal with the conduct of criminal cases under the Act. Section 443 lets the Central Government appoint company prosecutors, section 444 lets it direct an appeal against an acquittal, and section 445 applies the compensation rule for accusation without reasonable cause to cases before the Special Court or Court of Session.
The Central Government may appoint one or more company prosecutors, generally, for a case or for a class of cases in a local area, to conduct prosecutions under the Act, with all the powers and privileges of Public Prosecutors under the Code of Criminal Procedure (s.443). It may direct an appeal against an order of acquittal passed by any court other than a High Court (s.444). Section 250 of the Code of Criminal Procedure, 1973 applies mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or Court of Session (s.445).
Sections 443 to 445 at a glance
| Section | What it does | Who acts |
|---|---|---|
| 443 | Appoints company prosecutors with the powers and privileges of Public Prosecutors appointed under section 24 of the Code | Central Government |
| 444 | Appeal against acquittal by any court other than a High Court | Central Government directs a company prosecutor or authorises another person |
| 445 | Compensation for accusation without reasonable cause; section 250 CrPC applies mutatis mutandis | Special Court or Court of Session |
Note on the old code. All three sections cite the Code of Criminal Procedure, 1973. From 1 July 2024 it was replaced by the Bharatiya Nagarik Suraksha Sanhita, 2023, and references to the old Code are now read as references to the new law. We do not give the new section numbers here. Check the equivalent provisions in the new Sanhita before citing them.
Section 443: company prosecutors
"Notwithstanding anything contained in the Code of Criminal Procedure, 1973", the Central Government may appoint:
- generally, or
- for any case, or in any case, or
- for any specified class of cases in any local area,
one or more persons as company prosecutors "for the conduct of prosecutions arising out of this Act". A company prosecutor has all the powers and privileges that the Code confers on Public Prosecutors appointed under section 24 of the Code.
In plain terms, the Central Government has its own route to appoint prosecutors for offences under the Companies Act. The prosecutor appears in court, such as the Special Court, and leads the prosecution. For the courts that try these offences, see sections 435 to 441: Special Courts and compounding of offences.
If you are a director, officer or company facing a complaint or prosecution under the Act, our legal consultation team can help you understand the allegation, the court and your options.
Section 444: appeal against acquittal
Under section 444, the Central Government may, in any case arising under the Act:
- Direct any company prosecutor, or
- Authorise any other person, by name or by virtue of his office,
to present an appeal from an order of acquittal passed by any court, other than a High Court. An appeal presented by such prosecutor or other person is deemed to have been validly presented to the appellate court.
Three points from the text:
- The power belongs to the Central Government, not to the informant or the company.
- It covers acquittals by courts other than a High Court, so an acquittal by a Special Court is within it. The text does not cover an acquittal passed by a High Court.
- The section does not give a time limit. The time to appeal, and the appellate court, come from the procedural law for criminal appeals, so check them before acting. The section only says that an appeal so presented is deemed validly presented.
Example. The Special Court acquits a director of an offence under the Act. The Central Government directs the company prosecutor to present an appeal. The appeal is deemed validly presented to the appellate court, so the question of who may present it does not arise.
Section 445: compensation for accusation without reasonable cause
Section 445 says the provisions of section 250 of the Code of Criminal Procedure, 1973 apply mutatis mutandis to compensation for accusation without reasonable cause before the Special Court or the Court of Session. The effect is that where a complaint is found to be without reasonable cause, the court can consider compensation to the accused, under the procedure borrowed from the Code.
We do not set out the detailed terms of section 250 here, such as the amount or the procedure, because they depend on the Code and its replacement. Check the text of the current provision before relying on it. The aim is to discourage baseless accusations. It is a safeguard for accused persons, balancing the prosecution powers in sections 443 and 444.
How these sections fit with the rest of the Act's criminal framework
| Topic | Where to look |
|---|---|
| Courts that try offences | Sections 435 to 438: Special Courts |
| Compounding | Section 441, in sections 435 to 441 |
| Fraud | Section 447 |
| Level of punishment | Section 446A sets factors such as size of company, nature of business, injury to public interest, nature of default and repetition |
Proposed change (Corporate Laws (Amendment) Bill, 2026)
We found no clause in the Corporate Laws (Amendment) Bill, 2026 that amends section 443, 444 or 445. A clause of the Bill (clause 97) amends section 441, which deals with compounding and is outside these three sections. The Bill was introduced in Lok Sabha on 23 March 2026 and sent to a Joint Parliamentary Committee, whose report came on 3 August 2026. It is pending and not law as on 30 September 2026.
Need help with a prosecution under the Companies Act?
A prosecution turns on the complaint, the court and the record. Our legal consultation team can review the allegation with you and advise on the steps available, including compounding where the law allows it.
Key takeaways
- The Central Government appoints company prosecutors for prosecutions under the Act.
- They have the powers and privileges of Public Prosecutors under the Code.
- The Central Government can direct an appeal against an acquittal by any court other than a High Court.
- Section 250 CrPC applies, mutatis mutandis, to compensation for accusation without reasonable cause before the Special Court or Court of Session.
- References to the old Code are now read as references to the Bharatiya Nagarik Suraksha Sanhita, 2023.
Read next
- Mediation and Conciliation Panel: section 442
- Legal representation and limitation: sections 432 and 433
- Sections 435 to 441: Special Courts and compounding of offences
- Section 447: punishment for fraud
Disclaimer: Based on the Companies Act, 2013 as amended up to 1 April 2021 (official consolidated text), read with later developments noted in the article; proposals in the Corporate Laws (Amendment) Bill, 2026 are pending and not law as on 30 September 2026. Verify current notifications and rules before acting.