236
102
—
103
-
of books,
5, c. 23, s. 272,
(2) Where any person powns, pledges or disposes of any property in circumstances which amount to a misdemeanour under paragraph (0) of subsection (1) of this section, every person who takes in pawn or pledge or otherwise receives the property knowing it to be pawned, pledged, or disposed of in such circum- stances as aforesaid shall be guilty of a mis- demeanour, and on conviction thereof liable to be punished in the same way as if he had received the property knowing it to have been obtained in circum- stances amounting to a misdemeanour.
(3) For the purposes of this section, the expression "director" shall include any person in accordance with whose directions or instructions the directors of a company have been accustomed to act.
or
Penalty for
258. If any director, manager or other officer, or falsification contributory of any company being wound up destroys,
mutilates, alters, or falsifies any books, papers, 19 & 20 Geo. securities, or makes or is privy to the making of any false or fraudulent entry in any register, book of account, or document belonging to the company with intent to defraud or deceive any person, he shall be guilty of a misdemeanour, and be liable to imprison. ment for any term not exceeding two years, with or without hard labour.
Frauds by officers of companies which have gone into
liquidation,
19 & 20 Qeo.
5, c. 23
s. 273.
Liability
where
proper
accounts
not kept.
5, c. 23,
s. 274.
259. 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 a 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:
(b) with intent to defraud creditors of the com- pany, has made or caused to be made uny 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 creditore of the com- pany, 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 misdemeanour and shall be liable on conviction on indictment to imprisonment for a term not exceeding two years, or on summary conviction to imprisonment for a term not exceeding twelve monthis.
280. (1) If where 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
19 & 20 Geo. winding up, every director, manager or other officer of the company who was knowingly a perty to or connived at the default of the company shall, unless he shows that he acted honestly or that in the eircumstances in which the business of the company was carried on the default was excusable, be liable on conviction on indictment to imprisonment for a term not exceeding one year, or on summary con- vietion to imprisonment for a term not exceeding six months.
(2) For the purposes of this section, proper books of account shall be deemed not to have been kept in the ease of any company if there have not been kept Buch books or accounts as are necessary to exhibit and explain the transactions 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 statements of the annual stocktakings and (except in gocus, the case of goods sold by way of ordinary retail trace) of all goods sold and purchased, showing the goods and the buyers and sellers thereof in sufficient detail to enable those goods and those buyers and sellers
to be identified.
261.—(1) If in the course of the winding up of a Responsibility company it appears that any business of the company of directors has been carried on with intent to defraud creditora for
fraudulent
of the company or creditors of any other person or trading. for any fraudulent purpose, the court, on the applica- 19 & 20 Geo. tion of the official receiver, or the liquidator or any 5, c. 23, creditor or contributory of the company, may, if it . 275. thinks proper so to do, declare that directors, whether past or present, of the company any of the who were knowingly parties to the carrying on of the business in manner aforesaid shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the court may direct.
(2) Where the court makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration, and in particular may make provision for making the liability of any sucli director under the declaration a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any company or person on his behalf, Or any person claiming as assignee from or through the director, company or person, and may from time to
time nake such further order as may be necessary for the purpose of enforcing any charge imposed under this subsection.
For the purpose of this subsection, the expression "assignee" includes any person to whom or in whose favour, by the directions of the director, the debt, obligation, mortgage or charge was created, issued or transferred or the interest created, but does not in- clude an assignee for valuable consideration (not including consideration by way of marringe) given in good faith and without notice of any of the matters on the ground of which the declaration is made.
(3) Where any business of a company is carried on with such intent or for such purpose as is mentioned in subsection (1) of this section, every director of the company who was knowingly a party to the carrying on of the business in manner aforesaid, shall be liable on conviction on indictment to imprisonment for a term not exceeding one year.
(4) The court may, in the case of any person in respect of whom a declaration has been made under subsection (1) of this section, or who has been con- victed of an offence under subsection (3) of this section, order that that person shall not, without the leave of the court, be a director of or in any way, whether directly or indirectly. be concerned in or take part in the management of a company for such period, not exceeding five years, from the date of the declaration or of the conviction, as the case may be, as may be specified in the order, and if any person nets in contravention of an order made under this subsection he shall, in respect of each offence, be liable on conviction on indictment to imprisonment for a term not exceeding two years, or on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding five thousand dollars, or to both such imprisonment and fine.
In this subsection the expression "the court" in relation to the making of an order, means the court
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