1. • Name Waqas Asghar
• Roll No 8740
• Class Bs commerce 6th semster (M)
• Chapter Investigation of company
2. • Topic Name Action against company
If it appears from the final report that any person in the relation to
the company has been guilty of an offence for which he is
criminally liable the Commission may prosecute such person . All
officers, employees, and agents, of the company must assist in
connection with the prosecution.
3. 2. Action against management;
a. Remove any director chief executive or other officer of the company.
b. Direct that director should bring change in the management
power accounting policy specified in the order.
c. Directed the company to call a meeting of its member to consider
matter specified in the order and take remedial action.
3. Effect of court order;
a. If a director is removed , the casual vacancy shall be filled
in accordance with the Act.
b. If the chief executive is removed the board shall appoint
another person as the chief executive.
4. 4. Cancellation of contract
The director ,chief executive, managing agent or other officers of
the company shall not be paid any compensation for cancellation or
modification of a contract to which he is a party or beneficiary.
5. Loss of office
No person shall be paid any compensation or damages for loss of
office on the order of the court.
6. Application for winding up
a. A petition for winding up on the ground that it is just and
equitable that it should be wound up.
5. In an unlawful or fraudulent manner.
In a manner not according to the memorandum.
Restrictions on share or debenture
1 The Commission can impose the following restriction on the transfer of share
up to one year to find out the relevant facts;
a. Any transfer of those share shall be declared void.
b. Voting rights shall not be exercised in respect of those shares.
C . No change shall be made in the director's power chief executive other than
a change by operation of law.
6. 2. Is the transfer of share has taken place and a change in director
is likely to take place and the Commission think that such change will
be against the public interest it may direct that;
a. Voting rights in respect of those cheer shall not be exercised for the
period up to one year.
b. A resolution passed or action taken to change the directors shall
have no effect unless confirmed by the Commission.
Investigation during winding up
1. A company has passed resolution for winding up.
7. 2. A petition has been submitted to the court for winding up of the
3. Any other civil or criminal proceeding have been started against the
company or its officers.
Serious fraud investigation
1. The commission may if it thinks data matter is of public
importance, request the federal government to form a joint
2. Joint investigation team shall be headed by a senior level officer of
the Commission and may include an officer of any federal law
enforcement agency ,bureau or authority.
8. • 3. The inspector must have experience in the fields of corporate
affairs accountancy, taxation, forensic audit, capital market the
banking information technology law or other fields.
• 4. The court may try other offence charged under any other law at
the same trial if the offence is connected .
• 5. The direction of the federal government shall be binding and any
person who fails to comply shall be guilty of an offence punishable
with imprisonment for 30 days or a fine up to 100,000 rupess.