Companies Act Section 405 — Power of Central Government to direct companies to furnish information or statistics
CHAPTER XXV COMPANIES TO FURNISH INFORMATION OR STATISTICS
Commercial / Corporate
Summary
Sub-section (1) allows the Central Government to issue an order requiring companies generally, a particular class of companies, or a single company to provide specified information or statistics about their constitution or working, within a time limit set in that order.
Sub-section (2) states that every order made under sub-section (1) must be published in the Official Gazette. The order may be addressed to companies generally or to a class of companies, in whatever manner the Central Government thinks fit. The date of this publication is treated as the date on which the requirement for information or statistics is formally made on those companies.
Sub-section (3) gives the Central Government the power to verify the accuracy and completeness of any information or statistics furnished under an order made under sub-section (1). For this purpose, it may issue another order requiring the company or companies to produce records or documents in their possession, allow inspection of such records by an officer, or provide further information as the Government considers necessary.
Sub-section (4) sets out the consequences of non-compliance. If a company fails to comply with an order made under sub-section (1) or sub-section (3), or furnishes information or statistics that is incorrect or incomplete in any material respect, the company and every officer of the company who is in default will be liable to a penalty of twenty thousand rupees. If the failure continues, there is an additional penalty of one thousand rupees for each day after the first day of the failure, up to a maximum of three lakh rupees.
Sub-section (5) clarifies that where a foreign company carries on business in India, all references to a company in this section are deemed to include references to that foreign company, but only in relation to such business.
Official Text
(1) The Central Government may, by order, require companies generally, or any class of companies, or any company, to furnish such information or statistics with regard to their or its constitution or working, and within such time, as may be specified in the order.
(2) Every order under sub-section (1) shall be published in the Official Gazette and may be addressed to companies generally or to any class of companies, in such manner, as the Central Government may think fit and the date of such publication shall be deemed to be the date on which requirement for information or statistics is made on such companies or class of companies, as the case may be.
(3) For the purpose of satisfying itself that any information or statistics furnished by a company or companies in pursuance of any order under sub-section (1) is correct and complete, the Central Government may by order require such company or companies to produce such records or documents in its possession or allow inspection thereof by such officer or furnish such further information as that Government may consider necessary. 1[
(4) If any company fails to comply with an order made under sub-section (1) or sub-section (3), or furnishes any information or statistics which is incorrect or incomplete in any material respect, the company and every officer of the company who is in default, shall be liable to a penalty of twenty thousand rupees and in case of continuing failure, with a further penalty of one thousand rupees for each day after the first during which such failure continues, subject to a maximum of three lakh rupees.]
(5) Where a foreign company carries on business in India, all references to a company in this section shall be deemed to include references to the foreign company in relation, and only in relation, to such business. 2[