ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART IX - INVESTIGATIONS

Section 196. Appointment of inspectors for declared companies.

(1) Where a company or foreign company has been declared to be a company to which this Part applies, the Minister shall appoint one or more inspectors to investigate the affairs of that company, and to report his opinion thereon to the Minister. (2) The expenses of and incidental to an investigation of a declared company shall be defrayed in the first instance out of moneys provided by Parliament. (3) Where the Minister is of the opinion that the whole or any part of the expenses of and incidental to the investigation should be paid by the company or by any person who requested the appointment of the inspector the Minister may by notice published in the Gazette direct that the expenses be so paid. (4) A notice under subsection (3) may specify the time and the manner in which the payment of the expenses shall be made. (5) Where a notice has been published by the Minister under subsection (4) the persons named in the notice to the extent therein specified shall be liable to reimburse the Minister in respect of those expenses. (6) Action to recover any such expenses may be taken in the name of the Government of Malaysia in any court of competent jurisdiction. (7) Where a notice under subsection (3) has been published for the payment of the whole or part of the expenses by a company and the company is in liquidation or subsequently goes into liquidation the expenses so ordered to be paid by the company shall be deemed to be part of the costs and expenses of the winding up for the purposes of paragraph 292(1)(a). (8) The report of the inspector may if he thinks fit, and shall, if the Minister so directs, include a recommendation as to the terms of the notice which he thinks proper in the light of his investigation to be given by the Minister under subsection (3).