Distinguish between the following: 'Inspection' and 'investigation'.

CS Executive · Company Law · PYQS · June 2015
Distinguish between the following: 'Inspection' and 'investigation'.

Answer & Explanation:

Inspection and Investigation Section 206 of the Companies Act, 2013 deals with inspection of documents and books and papers of any company. The section empowers the Registrar or Inspectors appointed by the Central Government to conduct inspection in order to ascertain that all the transactions have been validly entered into and recorded in appropriate books and those applicable laws, rules and procedures have been compiled by the company. Inspection is intended to be a routine not an adhoc or special affair. Investigation within the meaning of the relevant provisions of the Act, is a form of probe; deeper probe; into the affairs of a company. It is a fact finding exercise. The main object of investigation is to collect evidence and to see if any illegal acts or offences are disclosed and then decide the action to be taken. The said expression also includes investigation of all its business affairs-profits and losses, assets including goodwill, contracts and transactions, investments and other property interests and control of subsidiary companies too.

Topics: Inspection, Inquiry and Investigation

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