Companies Act Section 226 — Voluntary winding up of company, etc., not to stop investigation proceedings
CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION
Commercial / Corporate
Summary
An investigation under this Chapter can be started even if certain other events have already happened, and the investigation will not be stopped or paused just because of those events.
Under clause (a), the investigation can proceed even if an application has been made under section 241 of the Act.
Under clause (b), the investigation can proceed even if the company has passed a special resolution to voluntarily wind itself up.
Under clause (c), the investigation can proceed even if some other proceeding for winding up the company is already pending before the Tribunal.
The first proviso states that if the Tribunal passes a winding up order in a proceeding referred to in clause (c), the inspector must inform the Tribunal that the investigation is still pending, and the Tribunal will then pass whatever order it considers appropriate.
The second proviso states that the winding up order does not excuse any director or other employee of the company from taking part in the proceedings before the inspector, and it does not remove any liability that may arise from the inspector's findings.
Official Text
An investigation under this Chapter may be initiated notwithstanding, and no such investigation shall be stopped or suspended by reason only of, the fact that—
(a) an application has been made under section 241;
(b) the company has passed a special resolution for voluntary winding up; or
(c) any other proceeding for the winding up of the company is pending before the Tribunal:
Provided that where a winding up order is passed by the Tribunal in a proceeding referred to in clause (c), the inspector shall inform the Tribunal about the pendency of the investigation proceedings before him and the Tribunal shall pass such order as it may deem fit:
Provided further that nothing in the winding up order shall absolve any director or other employee of the company from participating in the proceedings before the inspector or any liability as a result of the finding by the inspector.