COMPANIES ACT 1981 No. 89 of 1981 - SECT 555 Liability where proper accounts not kept

COMPANIES ACT 1981 No. 89 of 1981 - SECT 555

555. (1) If-

   (a)  a provision of section 267 was not complied with, in respect of a
        company to which this section applies, during the whole or any part of
        the period of 2 years immediately preceding the relevant day or the
        period between the incorporation of the company and the relevant day,
        whichever is the shorter; and

   (b)  the company was at any time during that period, or became at a later
        time, a company to which this section applies, a director of the
        company who failed to take all reasonable steps to secure compliance
        by the company with the provision throughout that period and any
        officer of the company who is in default are each guilty of an
        offence.

Penalty: $5,000 or imprisonment for 1 year, or both.

(2) In any proceedings against a person for failure to take all reasonable
steps to secure compliance by a company with a provision of section 267, it is
a defence if the person proves that he had reasonable grounds to believe and
did believe that a competent and reliable person was charged with the duty of
seeing that that provision was complied with and was in a position to
discharge that duty.