1053. Accounting records of cell companies

(1) Section 376 (duty to keep accounting records) shall not apply to a cell of a cell company.
(2) However, the cell company must keep accounting records in respect of each of its cells that are sufficient to show and explain the cell's transactions and are such as to—
(a) disclose with reasonable accuracy, at any time, the financial position of the cell at that time, and
(b) enable its directors to ensure that any accounts prepared by the company in respect of the cell comply with the requirements of these Regulations.
(3) The accounting records kept by a cell company under section 375 (duty to keep accounting records) may include matters included by it in any accounting records kept by the company under subsection (2).
(4) If a cell company fails to comply with subsection (2) a contravention of these Regulations is committed by it and every officer of the company who is in default.
(5) It is a defence for an officer charged with such an offence to show that he acted honestly and that in the circumstances in which the cell company's business was carried on the default was excusable.
(6) A person who commits the contravention referred to in subsection (4) shall be liable to a fine of up to level 5.