Explain in brief the grounds on which the Central Government may order for investigation into affairs of company.
CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · June 2019
Explain in brief the grounds on which the Central Government may order for investigation into affairs of company.
Answer & Explanation:
Investigation into the affairs of the company may be ordered by the Central Government on grounds given in Section 210(1) of the Companies Act, 2013. The investigation shall be ordered by Central government, where an order of investigation was made by a court or the tribunal. Where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company- on the receipt of a report of the Registrar or inspector; on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or in public interest, it may order an investigation into the affairs of the company. Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company. For the purpose of investigation, the Central Government may appoint one or more inspectors to investigate the affairs of the company. These inspectors shall report on the affairs of the company in such manner as the central government may direct.
Topics: Company Law
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