PART III CORPORATE CODE

Operation

Punishment for fraudulent trading64

1

If any business of an open-ended investment company is carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, every person who was knowingly a party to the carrying on of the business in that manner is guilty of an offence and liable—

a

on conviction on indictment, to imprisonment not exceeding a term of F1ten years or to a fine or to both;

F2b

on summary conviction—

i

in England and Wales, to imprisonment for a term not exceeding twelve months or a fine not exceeding the statutory maximum (or both);

ii

in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum (or both).

2

This regulation applies whether or not the company has been, or is in the course of being, wound up (whether by the court or otherwise).