Companies Act (Cap. 386), article 314

314. If, where a company is dissolv ed, it is shown that proper accounting records were not kept by the company throughout the period of two years immediately preceding the dissolution or th e period between the reg istration of the com pany and the dissolut ion, whichever is the shorter, and it is furthermore shown that the company was, at the moment of its dissolution, unable to pay it s debts, every officer of the comp any who is in default shall, un less he shows that he acted diligently and that in the circumstances in which the business of the company was carried on the default wa s excusable, be guilty of an offence and liable on conviction to a fine (multa ) of not more than forty-six thousand and five hundred and eighty-seven euro (€46,587), or imprisonment for a term not exc eeding three years, or to both such fine ( multa) and imprisonment. Responsibility for fraudulent trading. Amended by: L.N. 425 of 2007; XVIII.2025.41.