Unit Trusts Act, 1972

Investigation of affairs of unit trust schemes.

18.—(1) The Minister may, on his own initiative or on the application in writing of the holders of not less than 10 per cent, in value of the units in issue of a unit trust scheme (being an application in relation to which the Minister is satisfied that it is not merely vexatious), appoint one or more competent inspectors to investigate and report on the administration of a registered unit trust scheme or a unit trust scheme the registration of which under this Act stands cancelled if it appears to the Minister—

(a) that it is in the interests of holders of units created under the scheme to do so, and

(b) that the matter is one of public concern.

(2) Sections 167 , 168 (other than subsection (3)) and 170 (other than subsection (3)) of the Companies Act, 1963 , shall apply in relation to an inspector appointed under this section to carry out an investigation as they apply in relation to inspectors appointed under section 165 of that Act, but with the following, and any other necessary, modifications:

(a) the references therein to the company shall be construed as references to the unit trust scheme to which the investigation relates and the references therein to the affairs of the company shall be construed as references to the administration of the scheme, and

(b) the references therein to any other body corporate shall be construed as including references to the manager and the trustee under the said unit trust scheme and to any other body corporate which is or has at any relevant time been the manager's or trustee's subsidiary or holding company or a subsidiary of the holding company of either of them or a holding company of the subsidiary of either of them, and

(c) the reference in the said section 167 to appointment under section 165 of the Companies Act, 1963 , shall be construed as a reference to appointment pursuant to an application under subsection (1) of this section, and

(d) the references in the said section 170 to any report made under section 169 of the Companies Act, 1963 , shall be construed as references to any report made under subsection (3) of this section.

(3) (a) (i) An inspector appointed under this section may, and if so directed by the Minister shall, make interim reports to the Minister and, on the conclusion of the investigation for which he was appointed, shall make a final report to the Minister.

(ii) Any such report shall be written or printed as the Minister directs.

(b) The Minister may, if he so thinks fit, forward a copy of any such report to the registered offices of the manager and the trustee under the unit trust scheme to which the report relates and to any person whom he considers to have a bona fide interest in the matter.

(c) The Minister may cause any such report to be printed and published.

(d) The Minister may lay any such report before each House of the Oireachtas and such publication shall be privileged.

(e) A copy of any such report shall be admissible in any legal proceedings as evidence of the opinion of the inspector who made the report in relation to any matter contained in the report.

(4) If an officer or agent of a company or other body corporate whose affairs are investigated by virtue of this section refuses to produce to the inspectors any book or document which it is his duty by virtue of this section so to produce or refuses to answer any question which is put to him by the inspectors with respect to the unit trust scheme whose affairs are being investigated or the affairs of the company or other body corporate, as the case may be, he shall be guilty of an offence.

(5) Section 171 of the Companies Act, 1963 , shall apply in relation to the expenses of and incidental to an investigation under this section (including any costs or expenses incurred by the Minister in or in connection with proceedings brought by virtue of section 170 (4), as applied by this section, of the Companies Act, 1963 (including expenses incurred by virtue of section 170 (5), as so applied, of that Act)) as it applies in relation to the expenses (as extended by subsection (3) of the said section 171) of and incidental to an investigation referred to in the said section 171, but with the substitution in subsection (1) (c) (ii) of the said section 171 for the reference to appointment under section 165 of the Companies Act, 1963 , of a reference to appointment pursuant to an application under subsection (1) of this section and with any other necessary modifications.

(6) Nothing in this section or in the provisions of the Companies Act, 1963 , as applied by this section, shall require disclosure to the Minister or to an inspector appointed by the Minister—

(a) by a solicitor of any privileged communication made to him in that capacity, or

(b) by bankers as such of any information as to the affairs of any of their customers other than the unit trust scheme whose administration is being investigated or a body corporate whose affairs are being investigated by virtue of section 167 , as applied by this section, of the Companies Act, 1963 .