Section 1002 of The Companies Act No. 17 of 2015: Offence of fraudulent trading
(1) If a business of a company is carried on with intent to defraud creditorsof the company or creditors of any other person, or for any fraudulent purpose, each person who knowingly participates in carrying on the business in that manner commits an offence.
(2) Subsection (1) applies whether or not the company has been liquidated oris in liquidation.
(3) A person found guilty of an offence under this section is liable on conviction to imprisonment for a term not exceeding ten years or a fine not exceeding ten million shillings, or to both.
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