Companies Act Section 210 — Investigation into affairs of company
CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION
Commercial / Corporate
Summary
Sub-section (1) explains when the Central Government may decide to order an investigation into a company's affairs. It may do so if it believes an investigation is necessary based on any of three situations: receiving a report from the Registrar or an inspector under section 208, being informed that the company itself has passed a special resolution saying its affairs should be investigated, or deciding that an investigation is needed in the public interest.
Under clause (a) of sub-section (1), the Central Government can order an investigation after it receives a report from the Registrar or an inspector that was made under section 208.
Under clause (b) of sub-section (1), the Central Government can order an investigation if the company has passed a special resolution indicating that its affairs ought to be investigated.
Under clause (c) of sub-section (1), the Central Government can order an investigation if it believes doing so is in the public interest.
Sub-section (2) states that if a court or the Tribunal, in any proceedings before it, passes an order saying that a company's affairs ought to be investigated, then the Central Government must order an investigation into those affairs.
Sub-section (3) provides that, for the purpose of this section, the Central Government may appoint one or more persons as inspectors to carry out the investigation into the company's affairs and to report on it in whatever manner the Central Government directs.
Official Text
(1) Where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company,—
(a) on the receipt of a report of the Registrar or inspector under section 208;
(b) on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or
(c) in public interest, it may order an investigation into the affairs of the company.
(2) 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.
(3) For the purposes of this section, the Central Government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the Central Government may direct.