COMPANIES ACT, 1928

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Inspection.
135.—(1) The Board of Trade may appoint one or more competent
inspectors to investigate the affairs of a company and to report
thereon in such manner as the Board direct—

In the case of a banking company having a share capital,
on the application of members holding not less than one-
third of the shares issued:

In the case of any other company having a share capital,
on the application of members holding not less than one-
tenth of the shares issued:

In the case of a company not having a share capital, on
the application of not less than one-fifth in number of the
persons on the company’s register of members.

(2) The application shall be supported by such evidence as the
Board of Trade may require for the purpose of showing that the
applicants have good reason for, and are not actuated by malicious
motives in, requiring the investigation, and the Board may, before
appointing an inspector, require the applicants to give security,
to an amount not exceeding one hundred pounds, for payment of
the costs of the inquiry.

(3) Itshall be the duty of all officers and agents of the company
to produce to the inspectors all books and documents in their custody
Or power.

4) An inspector may examine on oath the officers and agents
of the company in relation to its business. and may administer an
oath accordingly.

(5) If any officer or agent of the company refuses to produce
to the inspectors any book or document which it is his duty under
this section so to produce, or refuses to answer any question which
is put to him by the inspectors with respect to the affairs of the
company, the inspectors may certify the refusal under their hand
to the court, and the court may thereupon enquire into the case,
and after hearing any witnesses who may be produced against or
on behalf of the alleged offender and after hearing any statement
which may be offered in defence, punish the offender in like manner
as if he had been guilty of contempt of the court.

(6) On the conclusion of the investigation the inspectors shall
report their opinion to the Board of Trade, and a copy of the report
shall be forwarded by the Board to the registered office of the
company, and a further copy shall, at the request of the applicants
for the investigation, be delivered to them.

The report shall be written or printed, as the Board direct.
136.—(1) If from any report made under the last foregoing section
t appears to the Board of Trade that any person has been guilty
of any offence in relation to the company for which he is criminally
liable the Board shall proceed as follows —

[nvestigation of
affairs of com-
pany by Board
of Trade
nspectors.

Proceedings on
report by
inspectors.