(1) A director of a protected cell company commits an offence if the director fails to ensure that the protected cell company complies with the requirements of -

(a) regulation 46(1) (company records of segregation);

(b) regulation 77 (name and other particulars to appear on correspondence); or

(c) regulation 78 (contracts).

(2) A director of a protected cell company commits an offence if the director knowingly or recklessly causes records kept by the protected cell company in accordance with regulation 46(1) to be inaccurate at any time.

(3) In proceedings for an offence under paragraph (1), it is a defence for the accused to show that the accused took all reasonable precautions and exercised all due diligence to avoid committing the offence.

(4) A person guilty of an offence under paragraph (1) or (2) is liable -

(a) on conviction on indictment, to a fine; or

(b) on summary conviction -

(i) in England and Wales, to a fine;