Section 110
Bankrupt failing to keep proper account
Any person who has been adjudged bankrupt or in respect of whose estate a bankruptcy order has been made shall be punished with imprisonment which may extend to two years or with fine or with both if having been engaged in any trade or business during any period in the two years immediately preceding the date of the presentation of the bankruptcy petition, he has not kept proper books of account throughout that period and throughout any further period in which he was so engaged between the date of the presentation of the petition and the date of the bankruptcy order, or has not preserved all books of account so kept:
Provided that a person who has not kept or has not preserved such books of account shall not be convicted of an offence under this section—
(a)
if his unsecured liabilities at the date of the bankruptcy order did not exceed, in the case of a person who has not on any previous occasion been adjudged bankrupt or made a composition or arrangement with his creditors, four thousand ringgit, or in any other case one thousand ringgit; or
(b)
if he proves that in the circumstances in which he traded or carried on business the omission was honest and excusable.
(2)
(Deleted by Act A1197).
Act 360
(3)
For the purposes of this section, a person shall be deemed not to have kept proper books of account if he does not furnish the Director General of Insolvency with trading and profit and loss accounts for such period not exceeding three years prior to the date of the bankruptcy order and if he has not kept such books of account as are necessary to exhibit or explain his transaction and financial position in his trade or business, including a book or books containing entries from day to day in sufficient detail of all cash received and cash paid, and, where the trade or business has involved dealings in goods, statements of annual stock-takings, and (except in the case of goods sold by way of retail trade to the actual consumer) accounts of all goods sold and purchased showing the buyers and sellers thereof in sufficient details to enable the goods and the buyers and sellers thereof to be identified.