Section 297: Notice to prescribed company

297. Notice to prescribed company (1) Where the Director has reasonable ground to suspect that a prescribed company is experiencing financial difficulty, or is encountering other serious prejudice to its ability to honour its financial obligations, the [Issue 3] I14 – 162 Revised Laws of Mauritius Director may, after consulting with and receiving the approval of the Companies Supervisory Committee, give written notice to the company and to any related company of that company stating that it is a company on notice under this Sub-Part. (2) The Director may take action under subsection (1) where— (a) a resolution has been passed by the directors of a company under section 162 of the Companies Act; (b) the directors or shareholders of a company resolve to seek the assistance of the Companies Supervisory Committee; or (c) a report is given by the auditor of the company on its financial statements which reasonably indicates that the company is experiencing financial difficulty. (3) Every notice given under subsection (1) shall state the grounds on which it is given. (4) A notice given under subsection (1) shall be deemed to have been given upon delivery to the head office, registered office or principal place of business in Mauritius of the company or related company as the case may be. (5) A notice given under subsection (1) may at any time be amended or revoked by the Director with the approval of the Companies Supervisory Committee.