28
(c) parts with or is privy to the removal or disappearance of any books or documents
relating to the property or affairs of the company.
(3) Where a company is under reconstruction, every person shall be guilty of an offence
and liable to imprisonment for a period not exceeding three years who, within the twelve
months immediately preceding the commencement of the reconstruction of the company and
while being an officer of the company, acts as follows, unless he or she satisfies the court that
he or she had no intention to defraud, namely, every such person who, when making any
statement either verbally or in writing in regard to the business or affairs of the company and
for the information of its creditors or of any person who became its creditor on the faith of
such a statement, conceals any liability, present or future, certain or contingent, which the
company may then have contracted or mentions, as if it were an asset of the company, any
right or property which, at the time, is not an asset or in any way conceals or disguises or
attempts to conceal or disguise any loss which the company has sustained or gives any
incorrect account thereof, unless he or she satisfies the court that he or she had no intent to
defraud. For the purposes of this subsection an auditor of the company shall be deemed to be
an officer of the company.
(4) Every person shall be guilty of an offence and liable to imprisonment for a period not
exceeding one year who, while being an officer of the company—
(a) causes or knowingly permits an undue preference as defined by the Insolvency Act
[Chapter 6:04] to be given by the company; or
(b) causes or knowingly permits any debt or debts to the aggregate amount of one
hundred thousand dollars or upwards to be contracted by the company without any
reasonable expectation that the company will be able to discharge the same and the
company thereafter, being still a debtor for the said debt or debts, is subjected to a
reconstruction order.
(5) Every person shall be guilty of an offence and liable to imprisonment for a period not
exceeding two years who, while being a director, secretary or manager of a company and at
any time during the reconstruction of the company—
(a) knowing or suspecting that a false debt has been or is about to be proved against the
company, fails for a period of seven days to inform the administrator thereof in
writing; or
(b) fails to disclose to the administrator to the best of his or her knowledge all the
property of the company of any kind and the manner in which, the person to whom,
the consideration for which and the time when any part thereof was disposed of
unless he or she satisfies the court that he or she had some lawful excuse for such
failure; or
(c) fails to deliver to the administrator all books, documents, papers and writings in his
or her custody or under his or her control relating to the property or affairs of the
company, unless he or she satisfies the court that he or she had some lawful excuse
for such failure; or
(d) prevents the production or delivery to the administrator of any books, documents or
papers relating to the property or affairs of the company.
Select target paragraph3
Add to table of contents