Section 300 — Companies Act 1993: Liability if proper accounting records not kept

300 Liability if proper accounting records not kept (1) Subject to subsection (2) of this section, if— (a) A company that is in liquidation and is unable to pay all its debts has failed to comply with— (i) Section 194 of this Act (which relates to the keeping of accounting records); or (ii) Section 10 of the Financial Reporting Act 1993 (which relates to the preparation of financial statements); and (b) The Court considers that— (i) The failure to comply has contributed to the company's inability to pay all its debts, or has resulted in substantial uncertainty as to the assets and liabilities of the company, or has substantially impeded the orderly liquidation; or (ii) For any other reason it is proper to make a declaration under this section,— the Court, on the application of the liquidator, may, if it thinks it proper to do so, declare that any one or more of the directors and former directors of the company is, or are, personally responsible, without limitation of liability, for all or any part of the debts and other liabilities of the company as the Court may direct. (2) The Court must not make a declaration under subsection (1) of this section in relation to a person if the Court considers that the person— (a) Took all reasonable steps to secure compliance by the company with the applicable provision referred to in paragraph (a) of that subsection; or (b) Had reasonable grounds to believe and did believe that a competent and reliable person was charged with the duty of seeing that that provision was complied with and was in a position to discharge that duty. (3) The Court may give any direction it thinks fit for the purpose of giving effect to the declaration. (4) The Court may make a declaration under this section even though the person concerned is liable to be convicted of an offence. (5) An order under this section is deemed to be a final judgment within the meaning of section 17(1)(a) of the Insolvency Act 2006. Compare: 1955 No 63 s 319; 1980 No 43 s 31 Section 300(5): amended, on 3 December 2007, by section 445 of the Insolvency Act 2006 (2006 No 55).