# Effect of Furnishing False or Incorrect Information
The Act draws a distinction based on when the false information is furnished — during incorporation vs. after incorporation.
## A. During Incorporation (False info at the time of registration)
If any person furnishes false or incorrect particulars of any information OR suppresses any material information of which he is aware, in any document filed with the Registrar in relation to registration of a company:
👉 He shall be liable for action for fraud under Section 447.
## B. Post-Incorporation (False info / suppression after registration)
Where a company has been incorporated by furnishing false or incorrect information or by suppressing any material fact:
### 1. Liability of Persons
The following shall each be liable for action for fraud under Section 447:
- The promoters
- The persons named as the first directors
- The persons making the declaration under this section
### 2. Orders that the Tribunal (NCLT) may pass
On an application, if satisfied that the situation so warrants, the Tribunal may:
| # | Order |
|---|---|
| (i) | Pass orders for regulation of management, including changes (if any) in MOA and AOA, in public interest or interest of company, members, creditors |
| (ii) | Direct that liability of members shall be unlimited |
| (iii) | Direct removal of name of company from register of companies |
| (iv) | Pass order for winding up of the company |
| (v) | Pass such other orders as it may deem fit |
### Safeguards before any Tribunal order
- The company shall be given a reasonable opportunity of being heard.
- The Tribunal shall consider transactions entered into by the company, including obligations/liabilities contracted.
## Comparison Snapshot
| Aspect | During Incorporation | Post-Incorporation |
|---|---|---|
| Who is liable? | The person who furnished/suppressed info | Promoters + First Directors + Declarants |
| Action | Section 447 (Fraud) | Section 447 + Tribunal orders |
| Tribunal powers? | Not specified | Yes — wide-ranging |