Article 51 - Investigation of Companies, LLPs and branches

(1) In relation to any Company incorporated or branch registered under the Companies Regulations and any LLP incorporated under the LLP Regulations, the Regulatory Authority may also appoint Investigators under Article 50 if:
(A) in the case of a Company, the Company has, or the members of the Company holding not less than ten per cent in nominal value of the issue of share capital of the company have requested the Regulatory Authority in writing (setting out the reasons for the request) to do so; or
(B) the Regulatory Authority considers that there are circumstances suggesting that:
(i) the affairs of the Company, branch or LLP are being or have been conducted with intent to defraud the creditors of the company or of any other Person, or otherwise for a fraudulent or unlawful purpose, or in a manner unfairly prejudicial to some part of its members;
(ii) any actual or proposed act or omission by or on behalf of the Company, branch or LLP is or could be prejudicial to some part of its members;
(iii) any Person concerned with the formation or management of the Company, branch or LLP or its affairs has in connection therewith been guilty of fraud, misfeasance or other misconduct toward it or towards its members;
(iv) the members of the Company, branch or LLP (or any of them) have not been given all the information with respect to its affairs to which they are entitled or which they might reasonably expect; or
(v) the Company has been carrying on in or from the QFC a business which it is not permitted to be carried on in the QFC.
(2) Investigators appointed to investigate the affairs of a Company, branch or LLP may also investigate and report on the affairs of another Entity which is or has been the Subsidiary of the Company, LLP or Entity which has registered a branch under the Companies Regulations or a Subsidiary of any of its Parent Entities, if they consider it necessary for the purposes of their investigation.
Amended by QFC Reg 2010-2 (as from 9th December 2010)