Companies Act, 1990

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Extension of power of court to assess damages against directors.

148.—(1) Subsection (2) applies if in the course of winding up a company which is a subsidiary of another company, it appears that any director of the subsidiary's holding company has misapplied or retained or become liable or accountable for any money or property of the subsidiary, or has been guilty of any misfeasance or other breach of duty or trust in relation to the subsidiary.

(2) The court may, on the application of the liquidator, any creditor or contributory of the subsidiary, examine into the conduct of the director concerned and compel him—

(a) to repay or restore the money or property or any part thereof respectively with interest at such rate as the court thinks just, or

(b) to contribute such sum to the assets of the subsidiary by way of compensation in respect of the misapplication, retainer, misfeasance or other breach of duty or trust as the court thinks just.