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Companies Act, 1973 (Act No. 61 of 1973)

Chapter IX: Remedies of Members

Investigation into Affairs of Company

257. Inspection of company's affairs on application of members

 

 

1) The Minister may appoint one or more inspectors to investigate the affairs of a company and to report thereon in such manner as he may direct-
a) in the case of a company having a share capital, on the application of not less than one hundred members or of members holding not less than one twentieth of the shares issued; and
b) in the case of a company not having a share capital, on the application of not less than one-tenth of the number of persons on the register of members.

 

2) The application shall be supported by such evidence as the Minister may require showing that the applicants have good reason for desiring an investigation, and the Minister may, before appointing an inspector on any such application, require the applicants to give security to his satisfaction in an amount not exceeding two hundred rand towards the cost of the investigation.

 

3) Before appointing an inspector under subsection (1), the Minister shall, unless he is of opinion that to do so would defeat the objects of this section, furnish in writing to the company concerned a statement setting out the substance of the complaint made and afford it a reasonable opportunity of replying thereto.