CORPORATE ACCOUNTABILITY – I – ACCOUNTS

Proper books of account requirement mandates preservation, inspection rights, directors' responsibilities and statutory penalties under company law.

Companies must maintain proper books of account documenting receipts, expenditures, sales, purchases, assets and liabilities, with prescribed cost particulars where applicable; books and vouchers must be preserved for at least eight years. Directors and auditors have inspection rights; members do not have a general inspection right. Responsibility for keeping books rests with the managing director or manager and officers, or every director if no such officer exists. A range of statutory registers must be kept and annual accounts with the Board's report and a Directors' Responsibility Statement must be laid before the annual general meeting, with penalties for defaults.