1950_COMPANIES_ORDINANCE — Page 156

САР. 32]

[s, 259 cont.]

Companies.

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 guilty of a mis- 22 of 1950, s. 3. demeanor triable summarily and liable to imprisonment for

Responsibility

one year.

(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 transac- tions 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 in the case of goods sold by way of ordinary retail trade) 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.

[260

260. (1) If in the course of the winding up of a company for fraudulent it appears that any business of the company has been carried

of directors

trading,

19 & 20 Geo. 5,

c. 23, s. 275.

J

on with intent to defraud creditors of the company or creditors of

any other

person or for any fraudulent purpose, the court, on the application of the Official Receiver, or the liquidator or any creditor or contributory of the company, may, if it thinks proper so to do, declare that any of the directors, whether past or present, of the company 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 such 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

168