300. Power to order examination of promoters, directors, etc
(1) Where an order has been made for the winding up of a company by the
Tribunal, and the Company Liquidator has made a report to the Tribunal under this Act,
stating that in his opinion a fraud has been committed by any person in the promotion,
formation, business or conduct of affairs of the company since its formation, the Tribunal
may, after considering the report, direct that such person or officer shall attend before the
Tribunal on a day appointed by it for that purpose, and be examined as to the promotion or
formation or the conduct of the business of the company or as to his conduct and dealings
as an officer thereof.
(2) The Company Liquidator shall take part in the examination, and for that purpose he
or it may, if specially authorised by the Tribunal in that behalf, employ such legal assistance
as may be sanctioned by the Tribunal.
(3) The person shall be examined on oath and shall answer all such questions as the
Tribunal may put, or allow to be put, to him.
(4) A person ordered to be examined under this section—
(a) shall, before his examination, be furnished at his own cost with a copy of the
report of the Company Liquidator; and
(b) may at his own cost employ chartered accountants or company secretaries or
cost accountants or legal practitioners entitled to appear before the Tribunal under
section 432, who shall be at liberty to put to him such questions as the Tribunal may
consider just for the purpose of enabling him to explain or qualify any answers given
by him.
(5) If any such person applies to the Tribunal to be exculpated from any charges made
or suggested against him, it shall be the duty of the Company Liquidator to appear on the
hearing of such application and call the attention of the Tribunal to any matters which appear
to the Company Liquidator to be relevant.
(6) If the Tribunal, after considering any evidence given or hearing witnesses called by
the Company Liquidator, allows the application made under sub-section (5), the Tribunal
may order payment to the applicant of such costs as it may think fit.
(7) Notes of the examination shall be taken down in writing, and shall be read over to
or by, and signed by, the person examined, a copy be supplied to him and may thereafter be
used in evidence against him, and shall be open to inspection by any creditor or contributory
at all reasonable times.
(8) The Tribunal may, if it thinks fit, adjourn the examination from time to time.
(9) An examination under this section may, if the Tribunal so directs, be held before
any person or authority authorised by the Tribunal.
(10) The powers of the Tribunal under this section as to the conduct of the examination,
but not as to costs, may be exercised by the person or authority before whom the examination
is held in pursuance of sub-section (9).