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Most
of our investigations are carried out under section 447 of the
Companies Act 1985.
This
enables the Secretary of State, if she considers that there is good
reason, to require a company to produce its records to an appointed
investigator.
If
a company refuses to co-operate with the investigator, or there is a
risk of documents being destroyed, we can ask a magistrate for a
search warrant. The police and investigators can then search
premises on which there may be company documents and seize them.
Investigators
can also ask any person involved with a company, now or in the past,
to provide explanations or further information about company
documents. These questions can be wide-ranging, and those being
asked the questions are obliged by law to provide an answer.
A
lack of co-operation may also be taken into account when we consider
what further action to take against the company and its officers.
These
investigations are mostly carried out by DTI officials, or by others
who have the necessary expertise, and are usually completed within
three months.
The
current legislation relating to investigations are to be found in
sections 21 to 24 of the Companies (Audit, Investigations and
Community Enterprise) Act 2004. The full text of the Act can be
found at: http://www.legislation.hmso.gov.uk/acts/acts2004/20040027.htm In
addition the Guidance Notes on the current law on investigations can
be found at: http://www.dti.gov.uk/cld/companies_audit_etc_act/Public_Guidance_FINAL14Jan2005.doc
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