Proper books of account: officers face criminal liability at winding up if records missing unless honest, excusable defence applies. Failure to maintain proper books of account throughout the two years prior to winding up (or since incorporation if shorter) renders every officer in default criminally liable unless he proves he acted honestly and that the default was excusable. Liability attaches where necessary accounting records, including day to day cash entries, are absent; where goods are dealt in, missing annual stock statements and detailed records of goods sold and purchased (except ordinary retail sales) also constitute deemed non compliance.
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Proper books of account: officers face criminal liability at winding up if records missing unless honest, excusable defence applies.
Failure to maintain proper books of account throughout the two years prior to winding up (or since incorporation if shorter) renders every officer in default criminally liable unless he proves he acted honestly and that the default was excusable. Liability attaches where necessary accounting records, including day to day cash entries, are absent; where goods are dealt in, missing annual stock statements and detailed records of goods sold and purchased (except ordinary retail sales) also constitute deemed non compliance.
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