Penalty for 
falsification of 
books. 
Frauds by 
officers of com- 
panies which 
have gone into 
liquidation. 
Liability where 
proper accounts 
not kept. 
694 
SECRETARIAL PRACTICE 
takes in pawn or pledge or otherwise receives the property knowing 
it to be pawned, pledged, or disposed of in such circumstances as 
aforesaid shall be guilty of a misdemeanour. and on conviction 
thereof liable— 
(a) in England to be punished in the same way as if he had 
received the property knowing it to have been obtained in 
circumstances amounting to a misdemeanour; 
in Scotland on conviction on indictment to penal servitude 
for a period not exceeding seven years, or on summary 
conviction to imprisonment for a term not exceeding six 
months or to a fine not exceeding one hundred pounds, or 
to both such imprisonment and fine. 
(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. 
272. If any director, manager or other officer, or contributory of 
any company being wound up destroys, mutilates, alters, or falsifies 
any books, papers, or securities, or makes or is privy to the making 
of any false or fraudulent entry in any register, book of account, or 
document belonging to the company with intent to defraud or deceive 
any person, he shall be guilty of a misdemeanour, and be liable to 
imprisonment for any term not exceeding two years. with or without 
hard labour. 
273. If any person, being at the time of the commission of the 
alleged offence a director, manager or other officer 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; 
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; 
with intent to defraud creditors of the company, has con- 
cealed or removed any part of the property of the company 
since, or within two months before, the date of any un- 
satisfied judgment or order for payment of monev obtained 
against the company; 
he shall be guilty of a misdemeanour and shall be liable on con- 
viction on indictment to imprisonment for a term not exceeding two 
years, or on suminary conviction to imprisonment for a term not 
exceeding twelve months. 
(c) 
274.—(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, every director, manager or other officer of the company 
who was knowingly a party to or connived at the default of the 
company shall, unless he shows that he acted honestly or that in the