Section 219 — Penalty for contravention of section 217 or 218

Any
contravention or default in complying with requirements of sections 217 or 218
shall be an offence liable to a penalty of level 1 on the standard scale and shall also
be liable to pay the loss suffered by the depositor of security or the employee, on
account of such contravention.

ACCOUNTS OF COMPANIES

220. Books of account, to be kept by company.− (1) Every company
shall prepare and keep at its registered office books of account and other relevant
books and papers and financial statements for every financial year which give a true
and fair view of the state of the affairs of the company, including that of its branch
office or offices, if any:

Provided that in the case of a company engaged in production, processing,
manufacturing or mining activities, such particulars relating to utilisation of
material or labour or the other inputs or items of cost as may be specified, shall also
be maintained:

Provided further that all or any of the books of account aforesaid and other
relevant papers may be kept at such other place in Pakistan as the board may decide
and where such a decision is taken, the company shall, within seven days thereof,
file with the registrar a notice in writing giving the full address of that other place.

(2) Where a company has a branch office in Pakistan or outside
Pakistan, it shall be deemed to have complied with the provisions of sub-section
(1), if proper books of account relating to the transactions effected at the branch
office are kept at that office and proper summarized returns are sent periodically by
the branch office to the company at its registered office or the other place referred
to in sub-section (1).

(3) The books of account and other books and papers maintained by the
company within Pakistan shall be open for inspection at the registered office of the
company or at such other place in Pakistan by any director during business hours,
and in the case of financial information, if any, maintained outside the country,
copies of such financial information shall be maintained and produced for
inspection by any director.

(4) Where an inspection is made under sub-section (3), the officers and
other employees of the company shall give to the director making such inspection
all assistance in connection with the inspection which the company is reasonably
expected to give.

(5) The books of account of every company relating to a period of not
less than ten financial years immediately preceding a financial year, or where the
company had been in existence for a period less than ten years, in respect of all the
preceding years together with the vouchers relevant to any entry in such books of
account shall be kept in good order.

(6) If a company fails to comply with any of the requirements of this
section, every director, including chief executive and chief financial officer, of the
company who has by his act or omission been the cause of such default shall—
(a) in respect of a listed company, be punishable with imprisonment for
a term which may extend to two year and with fine which shall not
be less than five hundred thousand rupees nor more than five million
rupees, and with a further fine which may extend to ten thousand
rupees for every day after the first during which the default
continues; and

(b) in respect of any other company, be punishable with imprisonment
for a term which may extend to one year and with fine which may
extend to one hundred thousand rupees.

(7) The provisions of this section except those of sub-section (5), shall
apply mutatis mutandis to the books of account which a liquidator is required to
maintain and keep.