Microlesson · 5-min read

Punishment for Personation of Shareholder [Section 57]

# Punishment for Personation of Shareholder [Section 57]

## Offence

A person commits this offence if he:

Deceitfully personates as the owner of a security or share warrant, AND
Obtains (or attempts to obtain) such security/share warrant, OR
Receives (or attempts to receive) any money due to the actual owner.

## Punishment

Imprisonment: Not less than 1 year, may extend up to 3 years, AND
Fine: Not less than ₹1 lakh, may extend to ₹5 lakhs.

## Key Points

This is a mandatory minimum sentence (imprisonment + fine — both).
An attempt alone is sufficient; actual receipt is not necessary.

Worked example

### Example 1

Example: Mr. P pretends to be Mr. Q (a registered shareholder) and submits forged documents to claim dividend. Even if he fails to actually receive the money, P is liable under Section 57 with a minimum 1 year imprisonment and ₹1 lakh fine.

⚠️ Common exam mistakes

Believing attempt is not punishable — it is.
Confusing personation (Section 57) with forged transfer — personation requires impersonation of the actual owner, forged transfer involves a forged instrument.

Bare-Act text Section 57 · Companies Act, 2013 · click to expand

Section 57 — If any person deceitfully personates as owner of any security or share warrant and thereby obtains or attempts to obtain such security/share warrant, or receives or attempts to receive any money due to the owner, he shall be punishable.

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Punishment for Personation of

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