Section 1138 | Duty to take precautions against falsification

(1)Where company records are kept otherwise than in bound books, adequate precautions must be taken—

(a)to guard against falsification, and

(b)to facilitate the discovery of falsification.

(2)If a company fails to comply with this section, an offence is committed by every officer of the company who is in default.

(3)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.

(4)This section does not apply to the documents required to be kept under—

(a)section 228 (copy of director's service contract or memorandum of its terms); or

(b)section 237 (qualifying indemnity provision).