Section 675 of Insolvency Act CAP 53: Offences under this Division
(1) This section applies to a company in respect of which a moratorium has or had effect.
(2) A person who, at any time during the twelve months immediately preceding the date on which the moratorium took effect was an officer of the company—
(a) did an act specified in subsection (4); or
(b) was privy to the doing by others of an act specified in subsection (4)(c), (d) or (e), is taken to have committed an offence at that time.
(3) A person who, during the moratorium, is an officer of the company, commits an offence if the person—
(a) does an act specified in subsection (4); or
(b) is privy to the doing by others of an act specified in subsection (4)(c), (d) or (e).
(4) The following acts are specified for the purpose of subsections (2) and (3)—
(a) concealing any part of the company's property to the value of fifty thousand shillings or more, or concealing any debt due to or from the company;
(b) fraudulently removing any part of the company's property to the value of fifty thousand shillings or more;
(c) concealing, destroying, mutilating or falsifying any record affecting or relating to the company's property or affairs;
(d) making a false entry in any record affecting or relating to the company's property or affairs;
(e) fraudulently parting with, altering or making any omission from a document that affects or relates to the company's property or affairs;
(f) pawning, creation of a security right or disposing of property of the company that has been obtained on credit and has not been paid for (unless the pawning, creation of a security right or disposal was in the ordinary course of the company's business).
(5) In a prosecution for an offence under subsection (2) or (3) in relation to an act specified in subsection (4)(a) or (f), it is a defence to prove that the defendant had no intention to defraud.
(6) In a prosecution for an offence under subsection (2) or (3) in relation to an act specified in subsection (4)(c) or (d), it is a defence to prove that the defendant had no intention to conceal the state of affairs of the company or to defeat the law.
(7) If a person pawns, creates a security right or disposes of any property of a company in circumstances that would constitute an offence under subsection (2) or (3), each person who takes in pawn or security right, or otherwise receives, the property knowing it to be pawned, encumbered by a security right or disposed of in circumstances that—
(a) would, if a moratorium were obtained for within the twelve months beginning with the day on which the pawning, creation of a security right or disposal took place, constitute an offence under subsection (2); or
(b) constitute an offence under subsection (3), commits an offence.
(8) A person found guilty of an offence under this section is liable on conviction to a fine not exceeding five million shillings or to imprisonment for a term not exceeding five years, or to both.
(9) The insolvency regulations may increase or reduce the amounts specified in subsection (4).
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