JCW

[Application for inspection of account and records of the company under Section 167(6) of the Companies Act 1965] Justin was the counsel for the plaintiff. In allowing the plaintiff’s application to inspect the accounting books of the company pursuant to Section 167(6) of the Companies Act, the High Court held inter alia that:- (i)The onus was on the defendants to prove mala fides and unless the burden was discharged, it must be assumed that the plaintiff would exercise the right for the benefit of the company; (ii)A director who does not take part in the management remains liable as a director with fiduciary and statutory duties and for the discharge of these duties, the plaintiff must hold the right to inspect; (iii)There was no clear proof that the plaintiff intended to exercise her right of inspection as a director for an ulterior or improper purpose; and (iv)When there is suspicion and lack of co-operation, a director is all the more entitled, perhaps even obliged, to inspect company’s accounts to protect the interests of the company and its shareholders.