Companies Act (Cap. 386), article 405

405. (1) Where the court, in the course of proceedings before it under this Act, by order declares that the affairs of a comp any are to be investigated, the Registra r shall by letter of authority appoint one or more inspectors to investigate the affairs of that compa ny and to report thereon in s uch manner as he directs. (2) The court shall make an order as specified in sub-article (1 ) if it appears to it that there are circumstances suggesting - (a) that the company’s affairs are being or have been conducted with intent to defraud its creditors or otherwise for a fraudulent or unlawful purpose, or in a manner which is unfairly pre judicial to some part of its members; or (b) that any actual or proposed act or omission of the company is or would be so prejudicial, or that the company was formed for any fraudulent or unlawful purpose; or (c) that persons concerned with the company’s formation or the management of its affairs have in connection therewith been guilty of fraud or other misconduct towards it or towards its members; or (d) that the company’s members have not been given all the information with respect to its affairs which they might reasonably expect. (3) The provisions of sub-articles (1) and (2) shall apply without prejudice to the powers of the Registrar under article 404. (4) The power conferred by sub-article (2) shall be exercisable with respect to a company notwithstanding that it is in the cou rse of being wound up voluntarily. Inspectors’ powers during investigation. Amended by: IV . 2003.158.