Section 361 CAMA 2020

Section 361 Companies and Allied Matters Act is about Power of inspector to call for directors’ bank accounts. It is under Chapter 13 (Protection of minority against illegal and oppressive conduct action by or against the company) of the Act.

(1) If an inspector has reasonable grounds for believing that a director, or past director, of the company or other body corporate whose affair she is investigating maintains or has maintained a bank account of any description, whether alone or jointly with another person and whether in Nigeria or elsewhere, into or out of which there has been paid—

(a) the emoluments or part of the emoluments of his office as such director, particulars of which have not been disclosed in the financial statements of the company or other body corporate for any financial year,contrary to the provisions of Part V of the Second Schedule to this Act (in relation to particular in accounts of directors) ;

(b) any money which has resulted from or been used in the financing of an undisclosed transaction, arrangement or agreement ; or

(c) any money which has been in any way connected with an act or omission or series of acts or omissions, which on the part of that director constituted misconduct whether fraudulent or not towards the company or body corporate or its members, the inspector may require the director to produce to him all documents in the director’s possession, or under his control, relating to that bank account.

(2) For purposes of subsection (1) (b) of this section, an “undisclosed”transaction, arrangement or agreement is one the particulars of which have not been disclosed in the financial statement of any company or in a statement annexed thereto for any financial year, including the disclosure of contracts between companies and their directors.