Companies Act 2014 section 720

Additional offence with respect to section 718(c) and certain defences with respect to foregoing matters

Section 720 creates an additional offence for those who knowingly receive improperly pawned, pledged, or disposed-of company property, and sets out the defences available to persons charged with certain liquidation-related offences.

• Anyone who knowingly accepts company property that has been irregularly pawned, pledged, or disposed of (in breach of section 718(c)) commits a category 2 offence
• For certain offences — such as failing to disclose information to a liquidator, concealing or removing company property, or irregularly pledging company assets — a valid defence is to prove there was no intent to defraud
• For other offences — such as falsifying company books or failing to report a false debt — a valid defence is to prove there was no intention to conceal the company's state of affairs or to defeat the legal process
• In all cases, the burden of proof lies on the accused person to demonstrate they lacked the relevant dishonest intent