ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART X - WINDING UP

DIVISION 2 - WINDING UP BY THE COURT

Subdivision (4) - General Powers of Court

Section 250. Power to order public examination of promoters, directors, etc.

(1) Where the liquidator has made a report under this Part stating that, in his opinion, a fraud has been committed or that any material fact has been concealed by any person in the promotion or formation of the company or by any officer in relation to the company since its formation or that any officer of the company has failed to act honestly or diligently or has been guilty of any impropriety or recklessness in relation to the affairs of the company the Court may after consideration of the report direct that the person or officer, or any other person who was previously an officer of the company, including any banker, advocate or auditor, or who is known or suspected to have in his possession any property of the company or is supposed to be indebted to the company or any person whom the Court deems capable of giving information concerning the promotion, formation, trade dealings, affairs or property of the company, shall attend before the Court on a day appointed and be publicly examined as to the promotion or formation or the conduct of the business of the company, or in the case of an officer or former officer as to his conduct and dealings as an officer thereof. (2) The liquidator and any creditor or contributory may take part in the examination either personally or by an advocate. (3) The Court may put or allow to be put such questions to the person examined as the Court thinks fit. (4) The person examined shall be examined on oath and shall answer all such questions as the Court puts or allows to be put to him. (5) A person ordered to be examined under this section shall before his examination be furnished with a copy of the liquidator's report. (6) Where a person directed to attend before the Court under subsection (1) applies to the Court to be exculpated from any charges made or suggested against him the liquidator shall appear on the hearing of the application and call the attention of the Court to any matters which appear to him to be relevant and if the Court, after hearing any evidence given or witnesses called by the liquidator, grants the application the Court may allow the applicant such costs as in its discretion it thinks fit. (7) Notes of the examination— (a) shall be reduced to writing; (b) shall be read over to or by and signed by the person examined; (c) may thereafter be used in evidence in any legal proceedings against him; and (d) shall be open to the inspection of any creditor or contributory at all reasonable times. (8) The Court may if it thinks fit adjourn the examination from time to time.