19 Accounting records
(1) Every limited liability company shall cause accounting records to be kept in accordance with the provisions of this section.
(2) The accounting records shall be sufficient to show and explain the company’s transactions.
(3) The accounting records shall be such as to disclose, within a reasonable time and with reasonable accuracy, the financial position of the company at any time.
(4) The accounting records shall in particular contain-
(a) entries from day to day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place;
(b) a record of the assets and liabilities of the company; and
(c) where the company’s business involves dealing in goods-
(i) statements of stock held by the company at the end of each financial year of the company;
(ii) all statements of stocktakings from which any such statement as is mentioned in sub-paragraph (i) has been or is to be prepared; and
(iii) except in the case of goods sold by way of ordinary retail trade, statements of all goods sold and purchased showing the goods and the buyers and sellers in sufficient detail to enable the goods and the buyers and sellers to be identified.
(5) Subject to subsection (6), the accounting records shall be kept at the registered office of the company or at such other place as the members of the company think fit and shall at all times be open to inspection by the members of the company.
(6) If accounting records are kept at a place outside the Island by a company, accounts and returns with respect to the business dealt with in the accounting records so kept shall be sent to, and kept at a place in the Island and shall at all times be open to inspection by the members of the company.
(7) The accounts and returns to be sent to the Island in accordance with subsection (6) shall be such as to disclose with reasonable accuracy the financial position of the business in question at intervals not exceeding 6 months.
(8) Subject to any direction with respect to the disposal of any records kept by a company given under any regulations under section 28, any accounting records which a company is required by this section to keep shall be preserved by it for 6 years from the date on which they are made.
(9) If a company fails to comply with any provision of subsections (1) to (6), every member and manager (if any) of the company shall be guilty of an offence.
(10) A person shall not be guilty of an offence under subsection (9) if he shows that he acted honestly and that in the circumstances in which the business of the company was carried on the default was excusable.
(11) If any member or manager of a company fails to take all reasonable steps for securing compliance by the company with subsection (8) or has intentionally caused any default by the company thereunder he shall be guilty of an offence.
(12) Any person guilty of an offence under this section shall be liable-
(a) on conviction on information to custody for a term not exceeding 2 years, or to a fine, or to both;
(b) on summary conviction, to custody for a term not exceeding 6 months, or to a fine not exceeding £5,000, or to both.