Section 671 CAMA 2020

Section 671 Companies and Allied Matters Act is about Liability where proper accounts not kept. It is under Chapter 24 (Provisions applicable to every mode of winding-up) of the Act.

(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 winding-up or the period between the incorporation of this company and commencement of the winding-up, whichever is the shorter, each officer of the company who is in default, unless he shows that he acted honestly and that in the circumstances in which the business of the company was carried on the default was excusable,commits an offence and is liable on conviction to a fine as prescribed by the Commission in the regulation.

(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 of 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 dealing in goods, statements of the annual stock takings and (except in case of goods sold by way of ordinary retail trade) of all goods sold and purchased,showing the goods and the buyers and sellers in sufficient details to enable those goods and those buyers and sellers to be identified.