Companies Act, 1973 (Act No. 61 of 1973)Chapter IX: Remedies of MembersInvestigation into Affairs of Company258. Investigation of company's affairs in other cases |
| 1) | When a company by special resolution resolves or the Court by order declares that the affairs of a company ought to be investigated, the Minister shall appoint one or more inspectors to investigate the affairs of such company and to report thereon, in such manner as he may direct. |
| 2) | The Minister may appoint one or more inspectors to investigate the affairs of a company and to report thereon in such manner as he may direct, if it appears to him that there are circumstances suggesting- |
| a) | that the business of the company is being conducted with intent to defraud its creditors or the creditors of any other person or otherwise for a fraudulent or an unlawful purpose or in a manner oppressive or unfairly prejudicial or unjust or inequitable to any part of its members or that it was formed for any fraudulent or unlawful purpose; or |
| b) | that persons concerned with its formation or the management of its affairs have in connection therewith been guilty of any fraud, delict or other misconduct towards it or towards its members; or |
| c) | that its members have not been given all the information with respect to its affairs they might reasonably expect. |
| 3) | The provisions of section 257(3) shall apply mutatis mutandis in respect of an investigation under this section. |