Companies Act, 1973 (Act No. 61 of 1973)

Chapter XIV: Winding-up of Companies

Personal Liability Delinquent Directors and Others and Offences

426. Private prosecution of directors and others
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1)If it appears in the course of the winding-up of a company that any past or present director, member or officer of the company has been guilty of an offence for which he is criminally liable under this Act or, in relation to the company or the creditors of the company, under the common law, the liquidator shall cause all the facts known to him which appear to constitute the offence, to be laid before the Director of Public Prosecutions concerned and, if the said Director of Public Prosecutions certifies that he declines to prosecute, the liquidator may, subject to the provisions of section 386(3) and (4), institute and conduct a private prosecution in respect of such offence.

 

2)The Court may, upon application by the liquidator, order the whole or any portion of the costs and expenses incidental to such private prosecution to be paid out of the assets of the company in priority to all other liabilities.