1950_COMPANIES_ORDINANCE — Page 155

Companies.

(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.

[257

[CAP. 32

Penalty for

falsification

19 & 20 Geo. 5,

257. If any director, manager or other officer, or con- tributory of any company being wound up destroys, of books. mutilates, alters, or falsifies any books, papers, or securities, c. 23, s. 272. or makes or is privy to the making of any false or fraudulent entry in any register, book of account, or document belong- ing to the company with intent to defraud or deceive any person, he shall be guilty of a misdemeanor triable summarily, and be liable to imprisonment for two years, 22 of 1950, s. 3. with or without hard labour.

[258

companies which have

258. If any person, being at the time of the commission Frauds by of the alleged offence a director, manager or other officer officers of 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 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 triable summarily and shall be liable to imprisonment for two years.

gone into 19 & 20 Geo. 5,

liquidation.

c. 23, s. 273.

[259 22 of 1950, s. 3.

where proper

19 & 20 Geo. 5,

not kept.

259. (1) If where a company is wound up it is shown Liability that proper books of account were not kept by the company accounts 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,

c. 23, s. 274.

- 167

—

Page 155Page 156