sec.219Incurring debts not likely to be paid

sec.219 Incurring debts not likely to be paid

If an officer of a society to which this section applies was knowingly a party to the contracting of a debt by the society and had at the time the debt was contracted, no probable or reasonable grounds of expectation, after taking into consideration the society’s other liabilities (if any) at the time, of the society being able to pay the debt, the officer commits an offence. Maximum penalty—400 penalty units. If any business of a society to which this section applies has been carried on with intent to defraud the society’s creditors or creditors of another person or for a fraudulent purpose, a person who was knowingly a party to the carrying on of the business in that way commits an offence. Maximum penalty—800 penalty units or 14 years imprisonment. (sec.219-ssec.1) If an officer of a society to which this section applies was knowingly a party to the contracting of a debt by the society and had at the time the debt was contracted, no probable or reasonable grounds of expectation, after taking into consideration the society’s other liabilities (if any) at the time, of the society being able to pay the debt, the officer commits an offence. Maximum penalty—400 penalty units. (sec.219-ssec.2) If any business of a society to which this section applies has been carried on with intent to defraud the society’s creditors or creditors of another person or for a fraudulent purpose, a person who was knowingly a party to the carrying on of the business in that way commits an offence. Maximum penalty—800 penalty units or 14 years imprisonment.