Companies Act 2014 section 1225

Application of section 747(2) to CLGs

Section 1225 modifies the rules on court-appointed investigations of a company's affairs when applied to companies limited by guarantee (CLGs).

• Section 747(2) allows certain parties to apply to the court for the appointment of inspectors to investigate a company's affairs.
• When applied to a CLG, paragraph (c) of section 747(2) is removed — meaning that the ground for investigation set out in that paragraph does not apply to CLGs.
• Paragraph (c) of section 747(2) relates to an application by shareholders holding a certain proportion of issued shares — a concept that does not apply to CLGs, which have members rather than shareholders with share capital.
• All other grounds for applying for a court-appointed investigation under section 747(2) continue to apply to CLGs without modification.