Corporate insolvency by Vinod Kothari 24 Prosecution of delinquent officers Frauds in anticipation of bankruptcy [sec 206]: – If any 12 months prior to filing of bankruptcy: Any person has concealed an asset of the company or debt Removed any of the companys property Concealed destroyed or mutilated any books or paper Made any false entry in books or papers Pawned, pledged or Disposed of any property – The offender is liable to imprisonment or fine or both Transactions to defraud creditors or misconduct during winding up Falsification of books etc Penalties for offences prior to winding up – Contribution for wrongful trading
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