Sri Lanka Consolidated Acts

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Companies Act (No. 17 of 1982) - Sect 167

Expenses of investigation of company's affairs

167.
(1) The expenses of, and incidental to, an investigation by an inspector appointed by the Registrar under the provisions of section 161 or section 162 shall be defrayed in the first instance by the Registrar but the following persons shall, to the extent specified, be liable to repay the Registrar-
(a) any person who is convicted on a prosecution instituted as a result of the investigation by the Attorney-General, or who is ordered to pay damages; or restore any property in proceedings instituted by virtue of the provisions of subsection (4) of section 166, may In the same proceedings be ordered to pay the said expenses to such extent as may be specified in the order;
(b) any body corporate in whose name proceedings are instituted as aforesaid shall be liable to the amount or value of any sum or property recovered by it as a result of those proceedings ; and
(c) unless as a result of the investigation a prosecution is instituted by the Attorney-General-
(i) any body corporate dealt with by the report, where the inspector was appointed otherwise than of the Registrar's own motion shall be liable, except so far as the Registrar otherwise directs; and
(ii) any person making an application for the investigation, where the inspector was appointed under the provisions of section 161 shall be liable to such extent, if any, as the Registrar may direct,
(2) The report of an inspector appointed otherwise than of the Registrar's own motion may, if he thinks fit, and shall, if the Registrar so directs, include a recommendation as to the directions' (if any) which such inspector thinks appropriate, as a result of his, investigation, to be given under the provisions of paragraph (c) of subsection (1).
(3) For the purposes of this section, any costs or expenses Incurred by the Registrar in, or in connection with, proceedings brought by virtue of the provisions of subsection (4) of section 166 (including expenses incurred by virtue of the provisions of subsection (5) of that section) shall be treated as expenses of the investigation giving rise to the proceeding.
(4) Any liability to repay the Registrar imposed by the provisions of paragraphs (a) and (b) of subsection (1) shall, subject to satisfaction of the Registrar's right to repayment, be a liability also to identify all persons against liability under the provisions of paragraph (c) of subsection (1) and any such liability imposed by the provisions of paragraph (a) shall, subject as aforesaid, be a liability also to indemnify all persons against liability under the provisions of paragraph (b) ; and any person, liable under the provisions of paragraph (a) or paragraph (b) or sub-paragraph (i) or sub-paragraph (ii) of paragraph (c) shall be entitled to contribution from any other person liable under the same paragraph or sub -para graph, as the case may be, according to the amount of their respective liabilities thereunder.
(5) The expenses to be defrayed by the Registrar under the provisions of this section shall, so far as not recovered thereunder, be paid out of moneys provided by Parliament for the purpose.


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