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Dear Professor,
“Non-compliance: Acts of omission or commission, either intentional or unintentional, committed by the entity, which are contrary to the prevailing laws or regulations. Non-compliance does not include personal misconduct unrelated to the business activities of the entity.”
Professor, reducing profits deliberately or claiming false carry forward losses are examples of act of commission?
My understanding from the web is that an act of commission is a committing an illegal crime or doing something against the law. So here in the company’s management’s case are my aforementioned examples correct?
Yes – omission is failure to act (in this context in compliance with prevailing laws or regulations) and commission is to initiate some action – i.e. the act of committing something. (You can just stay “committing a crime” – by definition crime is contrary to law and therefore illegal.)
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