The Financial Secretary, Chen Maobo, met with the media at the Government Headquarters and explained that he cited the Companies Ordinance to appoint a senior accountant, Chen Jinrong, as an inspector to investigate Next Media's affairs.
He said that it was discovered that the information disclosed by Next Media was inconsistent, and it was necessary to appoint an examiner to enter Next Media's investigation based on the public interest to investigate whether Next Media's governance was improper, and whether the directors were responsible for their duties.
Chen Maobo met with the media at 6 pm on the 28th and will quote the "Companies Ordinance" to appoint inspectors.
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According to section 841 of the Companies Ordinance, if the Court of First Instance declares by order that the affairs of a company should be investigated, the Financial Secretary must appoint a person to conduct the investigation.
In addition, if the Financial Secretary feels that a company was formed for fraudulent or illegal purposes, one person can be appointed to investigate the affairs of the company if the following situations occur.
The relevant situation is as follows:
1. The company's affairs are being or have been handled in a way that unfairly harms the interests of general members or one or some members.
2. Someone is or has been dealing with the company's affairs with the intention of defrauding the company's creditors or any other person's creditors.
3. Someone is or has been dealing with the company's affairs for any other fraudulent or illegal purpose.
4. A person who has been shown to be involved in the company's composition or management of its affairs has committed fraud, misconduct or other improper conduct to the company, its members or its creditors in terms of the company's composition or management.
According to Article 846 of the Companies Ordinance, the inspector may require the company, its officers or former officers, the company's agent or former agent, and those who have documents with reasonable grounds to surrender any record documents related to the investigation , Including directors’ accounts.
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