698 SECRETARIAL PRACTICE
inform the liquidator accordingly, and thereupon, subject to the
previous sanction of the court, the liquidator may himself take
proceedings against the offender.

(5) If it appears to the court in the course of a voluntary
winding up that any past or present director. manager or other
officer, or any member, of the company has been guilty as aforesaid,
and that no report with respect to the matter has been made by the
liquidator to the Director of Public Prosecutions or the LordAdvocate
under subsection (2) of this section, the court may, on the application
of any person interested in the winding up or of its own motion, direct
the liquidator to make such a report, and on a report being made
accordingly the provisions of this section shall have effect as though
the report had been made in pursuance of the provisions of sub-
section (2) of this section.

(6) If, where any matter is reported or referred to the Director
of Public Prosecutions or Lord Advocate under this section, he
considers that the case is one in which a prosecution ought to be
instituted and, further that it is desirable in the public interest that
the proceedings in the prosecution should be conducted by him,
he shall institute proceedings accordingly, and it shall be the duty
of the liquidator and of every officer and agent of the company past
and present (other that the defendant in the proceedings) to give
him all assistance in connection with the prosecution which he is
reasonably able to give.

For the purposes of this subsection, the expression “agent” in
relation to a company shall be deemed to include any banker or
solicitor of the company and any person employed by the company
as auditor, whether that person is or is not an officer of the company.

(7) If any person fails or neglects to give assistance in manner
required by subsection (6) of this section, the court may, on the
application of the Director of Public Prosecutions or Lord Advocate,
as the case may be, direct that person to comply with the require-
ments of the said subsection, and where any such application is
made with respect to a liquidator the court may, unless it appears
that the failure or neglect to comply was due to the liquidator not
having in his hands sufficient assets of the company to enable him so
to do, direct that the costs of the application shall be borne bv the
liquidator personally.

(8) The Board of Trade, with the consent of the Treasury,
may direct that the whole or any part of any costs and expenses
properly incurred by the liquidator in proceedings duly brought
by him under this section shall be defrayed as expenses incurred by
the Board under this Act in relation to the winding up of companies
in England and subsection (3) of section thirteen of the Economy
{Miscellaneous Provisions) Act, 1926, shall apply accordingly.

Subject to any direction under this subsection and to any
mortgages or charges on the assets of the company and any debts to
which priority is given by section two hundred and sixty-four of
this Act, all such costs and expenses as aforesaid shall be payable
out of those assets in priority to all other liabilities pavable thereout.