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Companies Act, 1973 (Act No. 61 of 1973)

Chapter IX: Remedies of Members

Inquiry into Membership and Ownership of Shares and Control of Company

254. Appointment and powers of inspectors to investigate financial interest in and control of company

 

 

1) The Minister may-
a) when it appears to him that there is good reason to do so, appoint one or more inspectors to investigate and report to him on the membership of any company and otherwise with respect to such company for the purpose of determining the true persons who are or have been financially interested in the success or failure (real or apparent) of the company or able to control or materially to influence the policy of the company;
b) on an application complying with the requirements prescribed in section 257 in respect of an application under that section, for an investigation with respect to particular shares or debentures of a company, appoint an inspector to carry out such investigation.

 

2) Any appointment of such an inspector shall define the scope of the investigation to be carried out by him, whether in respect of the matters to be investigated or the period in respect of which the investigation is to be undertaken or otherwise, and may provide for an investigation to be confined to particular shares or debentures.

 

3) No application under subsection (1) (b) shall be refused unless the Minister is satisfied that the application is vexatious, nor shall there be excluded from the scope of the investigation by an inspector appointed in pursuance of such an application any matter which the applicant seeks to have included therein, except in so far as in the opinion of the Minister it would be unreasonable for that matter to be investigated.

 

4) The powers of an inspector shall, subject to the terms of his appointment, extend to the investigation of any circumstances suggesting the existence of an arrangement or understanding which, though not legally binding, is or was observed or likely to be observed in practice and which is relevant to any matter to be investigated.

 

5) The provisions of sections 259, 260 and 261 shall mutatis mutandis apply with reference to any investigation under this section: Provided that the Minister shall not be bound to furnish the company concerned or any other person with a copy of any report (or part thereof) by an inspector appointed under this section if there are substantial grounds in the public interest for not divulging the contents of the report or of parts thereof.

 


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