company investigation

company investigation
A Department for Business, Innovation and Skills investigation under section 432 of the Companies Act 1985. Under this provision, the Secretary of State may appoint inspectors to investigate the affairs of a company and report on it, if the court declares that its affairs ought to be investigated. The grounds for such an investigation include where there has been intent to defraud creditors, unfairly prejudicial conduct or the management have been guilty of fraud, misfeasance or other misconduct. Despite repeal of most of the provisions of the Companies Act 1985 on 1 October 2009, section 432 of the Companies Act 1985 (as amended) remains in force.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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