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Accounts to be Annexed to Balance Sheet:
By S.156 (1) the profit and loss of account, and, thus far as not incorporated in the balance sheet or profit and loss of account, any group of accounts laid later on the company in all-purpose meeting, shall be annexed to the balance sheet. however, S.156 (2) requires the accounts so annexed to be approved by the board of directors before the balance sheet is signed on their behalf.
By S.156 (3), if any copy of the balance sheet is concern circulated or published without having annexed thereto a copy of the profit and loss to be annexed, the company and each every officer of the company that who is in default shall be liable to a fine not exceeding one thousand shillings.
Exceptions for Nemo Dat Quod Non Habet However the "nemo dat" rule is subject for the following exceptions such are provided by the Act: like; (a) Estoppel With S.23
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