Section 407 of Insolvency Act CAP 53: Directors to lay statement of financial position before creditors
(1) The directors of the company shall—
(a) prepare a statement setting out the financial position of the company that complies with subsection (3);
(b) lay that statement before the creditors' meeting under section 406; and (c) appoint one of their number to preside at that meeting.
(2) It is the duty of the appointed director to attend the meeting and preside over it.
(3) A statement complies with this subsection if it— (a) specifies—
(i) the details of the company's assets, debts and liabilities prescribed by the insolvency regulations for the purposes of this section;
(ii) the names and addresses of the company's creditors;
(iii) the securities held by them respectively;
(iv) the dates when the securities were respectively given; and
(v) such further or other information as may be so prescribed; and
(b) is verified by a statutory declaration signed by two or more of the company's directors.
(4) If the directors, without reasonable excuse, fail to comply with subsection (1)(a), (b) or (c), each of them commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
(5) A director who, without reasonable excuse, fails to comply with a duty imposed by subsection (2) commits an offence and on conviction is liable to a fine not exceeding two hundred thousand shillings.
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