Section 503. Power to order public examination of promoters, directors, etc.

(1) A liquidator appointed in a winding up of a company may make a report to the Court stating that, in his opinion—

(a) a fraud has been committed;

(b) any material fact has been concealed by any person in the promotion or formation of the company or by any officer in relation to the company since its formation; or

(c) any officer of the company has failed to act honestly or diligently or has been guilty of any impropriety or recklessness in relation to the affairs of the company.

(2) After considering the report under subsection (1), the Court may direct—

(a) the person or officer, or any other person who was previously an officer of the company, including any banker, advocate or auditor, or who is known or suspected to have in his possession any property of the company or is supposed to be indebted to the company; or

(b) any person whom the Court deems capable of giving information concerning the promotion, formation, trade dealings, affairs or property of the company,

to appear before the Court on a date appointed and be publicly examined as to the promotion or formation or the conduct of the business of the company, or in the case of an officer or former officer, as to his conduct and dealings as an officer of the company.

(3) The liquidator and any creditor or contributory may take part in the examination either personally or by an advocate.

(4) The Court may put or allow to be put such questions to the person examined as the Court thinks fit.

(5) The person examined shall be examined on oath and shall answer all such questions as the Court puts or allows to be put to him.

(6) A person ordered to be examined under this section shall, before his examination, be furnished with a copy of the liquidator’s report.

(7) Where a person who is directed to attend before the Court under subsection (2) applies to the Court to be exculpated from any charges made or suggested against him, the liquidator shall appear on the hearing of the application and call the attention of the Court to any matters which appear to the liquidator to be relevant and if the Court, after hearing any evidence given or witnesses called by the liquidator, grants the application, the Court may allow the applicant such costs as it thinks fit.

(8) Notes of the public examination—

(a) shall be reduced to writing;

(b) shall be read over to or by and signed by the person examined;

(c) may thereafter be used in evidence in any legal proceedings against the person; and

(d) shall be open to the inspection of any creditor or contributory at all reasonable times.

(9) The Court may, if it thinks fit, adjourn the public examination from time to time.