Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework

A company in liquidation issued invoices without the winding-up statement. The liquidator had instructed staff to include it, but a clerk omitted it without his knowledge. In a prosecution, who can be punished under Section 344(2) beyond the company itself?

Besides the company, only an officer, the Company Liquidator or a receiver or manager who wilfully authorises or permits the non-compliance is punishable. A liquidator who instructed compliance and was unaware of the clerk's omission has not wilfully permitted it.

  1. AEvery officer, the Company Liquidator and any receiver or manager, regardless of knowledge
  2. BOnly the clerk who prepared the invoices
  3. COnly those officers, the Company Liquidator or receiver or manager who wilfully authorised or permitted the non-complianceCorrect
  4. DOnly the directors who held office before liquidation began

Explanation

Section 344(2) punishes the company, and every officer, the Company Liquidator and any receiver or manager who wilfully authorises or permits the non-compliance. Since the liquidator had instructed inclusion and the omission was without his knowledge, he did not wilfully permit it. Strict liability for all is not what the section provides.

Did you get it right without looking?

One question tells you little. A timed set on Compliance Framework shows your real accuracy, how long you take and where you lose marks.

Practise Compliance FrameworkFree diagnostic mock

More Compliance Framework questions