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Section 628 of The Companies Act No. 17 of 2015: Duty of company to keep proper accounting records

    

(1) Every company shall keep proper accounting records.
(2) For purposes of subsection (1), accounting records are proper only if they—(a) show and explain the transactions of the company;
(b) disclose with reasonable accuracy, up to the end of the previous three month trading period, the financial position of the company at that time; and
(c) enable the directors to ensure that every financial statement required to be prepared complies with the requirements of this Act.
(3) In particular, a company shall ensure that its accounting records—
(a) contain—
(i) entries from day to day of all amounts of money received and spent by the company and the matters in respect of which the receipt and expenditure takes place; and
(ii) a record of the assets and liabilities of the company; and (b) comply with the prescribed financial accounting standards.
(4) If the business of the company involves dealing in goods, the company shall ensure that its accounting records contain—
(a) statements of stock held by the company at the end of each financial year of the company;
(b) all statements of stock takings from which any statement of stock as is referred to in paragraph (a) has been or is to be prepared; and
(c) except in the case of goods sold in the ordinary course of ordinary retail trade – statements of all goods sold and purchased, showing the goods and the buyers and sellers in sufficient detail to enable them to be identified.
(5) A parent company that has a subsidiary undertaking in relation to which the above requirements do not apply shall take reasonable steps to ensure that the undertaking keeps such accounting records as will enable the directors of the parent company to ensure that every financial statement required to be prepared under this Part complies with the requirements of this Act.

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Disclaimer: This document is not to be taken as legal advise.

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