In re: South African Co-Operative Livestock Company Limited ; Beachy-Head and Others v Master ; Coates & Brandt v Master [1911] ZATPD 153 (10 November 1911)

Company - Winding-up - Examination of Officers - In what cases - Practice - Act 31 of 1909, sec.31

An order for examination under Act 31 of 1909, sec.152 may be made ex parte, but any person, ordered to be examined, may apply to have the order discharged on the ground that, under the circumstances of the case, the Court had no jurisdiction to make the Order.

The inquiry, contemplated by sec.152 of Act 31 of 1909, is a domestic inquiry for the purpose of ascertaining the relationship of promoter, director and shareholder to one another and not for the purpose of ascertaining the nature of transactions between the company and third persons, such as debenture holders.

Consequently where it was alleged that fraudulent misrepresentations had been made by a company through its directors or other persons, acting on its behalf, to members of the public who were thereby induced to become debenture holders.

Held, that the Court had no power to order an inquiry to be held, under sec.152.