Compantes. |Ch. 31. No. 1.

258. If any person, being at the time of the commission
of the alleged offence a director, manager or other officer of
a company which is subsequently ordered to be wound up
by the Court or subsequently passes resolution for
voluntary winding up -

(a) has by false pretences or by means of any other
fraud induced any person to give credit to the
company;

(6) with intent to defraud creditors of the company,
has made or caused to be made any gift or transfer of
or charge on, or has caused or connived at the levying
of any execution against, the property of the company;

(c) with intent to defraud creditors of the company,
has concealed or removed any part of the property of
the company since, or within two months before, the
date of any unsatisfied judgment or order for payment
of money obtained against the company;

he shall be guilty of a misdemeanor and shall be liable on
conviction on indictment to imprisonment for two years, or
on summary conviction to imprisonment for twelve months.

259. (1) If wherc a company is wound up it is shown that
proper books of account were not kept by the company
throughout the period of two years immediately preceding
the commencement of the winding up, every director,
manager or other officer of the company who was knowingly
a party to or connived at the default of the company shall,
unless he shows that he acted honestly or that in the
circumstances in which the business of the company was
carried on the default was excusable, be liable on conviction
on indictment to imprisonment for one year, or on summary
conviction to imprisonment for six months.

(2) For the purposes of this section, proper books of
account shall be deemed not to have been kept in the case
of any company if there have not been kept such books or
accounts as are necessary to exhibit and explain the trans-
actions and financial position of the trade or business of the
company, including books containing entries from day to
day in sufficient detail of all cash received and cash paid,
and, where the trade or business has involved dealings in
goods, statements of the annual stocktakings and (except

487

Frauds by
officers of
companies
which have
gone into
liquidation.

Liability
where
proper
accounts not
kept.