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

Chapter IX: Remedies of Members

Matters Incidental to Investigations

263. Expenses of and incidental to investigation of company's affairs
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1)The Minister shall in the first instance defray the expenses of and incidental to an investigation under section 257 or 258, but the following persons shall, to the extent stated, be liable to repay the Minister:
a)any person convicted of an offence disclosed by the investigation or ordered to pay damages or to restore any property in proceedings instituted under section 262(2)(a), shall be liable for such amount, if any, as may be determined by the Court when convicting such person or ordering the payment of such damages or the restoration of such property;
b)in any case where no proceedings are instituted in respect of any such offence and no order for the payment of any such damages or the restoration of any such property is made-
i)any body corporate whose affairs were the subject of the investigation: and
ii)in the case of an investigation under section 257, the applicants concerned, shall be liable for such an amount as the Minister may in each case determine; and
c)any body corporate in whose name proceedings are instituted under section 262(2)(a), shall be liable for the balance, if any, of such expenditure not recovered under paragraph (a), but not for an amount exceeding the amount or value of any property recovered in any such proceedings.

 

2)The amount determined under subsection (1) (a) may be the full amount of the expenditure in question or such lesser amount or proportion thereof as the Court considers just.

 

3)The provisions of subsection (1) (b) (i) shall not apply in any case where it appears from the relevant report that there was no substance in the allegations which gave rise to the investigation to which the report relates.

 

4)Any amount for which a body corporate may be liable by virtue of the provisions of subsection (1) shall be a first charge on the amount or value of any property recovered in proceedings referred to in subsection (1)(c).

 

5)An inspector may, if he deems fit, and shall, if the Minister so directs, include in his report on any investigation a recommendation as to the amount, if any, which in his opinion should under subsection (1)(b) be ordered to be paid by any body corporate or the applicants referred to therein.

 

6)For the purposes of this section any costs or expenses incurred by the Minister in or in connection with proceedings instituted by him under section 262(2)(a), including any amount which may become payable by him in terms of paragraph (b) of that subsection, shall be regarded as part of the expenditure incurred by him in respect of the investigation giving rise to such proceedings.