Companies Act, 1963

Investigation of company's affairs in other cases.

166.—Without prejudice to his powers under section 165, the Minister—

(a) shall appoint one or more competent inspectors to investigate the affairs of a company and to report thereon in such manner as the Minister directs if—

(i) the company by special resolution; or

(ii) the court by order;

declares that the company's affairs ought to be investigated by an inspector appointed by the Minister; and

(b) may do so if it appears to the Minister that there are circumstances suggesting—

(i) that the company's business is being conducted with intent to defraud its creditors or the creditors of any other person or otherwise for fraudulent or unlawful purposes or that the affairs of the company are being conducted or the powers of the directors are being exercised in a manner oppressive to any of its members or in disregard of their interests as members of the company or that it was formed for any fraudulent or unlawful purpose; or

(ii) that persons connected with its formation or the management of its affairs have in connection therewith been guilty of fraud, misfeasance or other misconduct towards it or towards its members; or

(iii) that its members have not been given all the information relating to its affairs which they might reasonably expect.