What is Investigation into companys affairs in other cases Section 213 of Indian Companies Act 2013

Investigation into companys affairs in other cases is defined under Section 213 of Indian Companies Act 2013. Provisions under this Section are:

Section 213 of Indian Companies Act 2013 "Investigation into companys affairs in other cases"

The Tribunal may, -

(a) on an application made by -

(i) not less than one hundred members or members holding not less than one-tenth of the total voting power, in the case of a company having a share capital; or

(ii) not less than one-fifth of the persons on the companys register of members, in the case of a company having no share capital, and supported by such evidence as may be necessary for the purpose of showing that the applicants have good reasons for seeking an order for conducting an investigation into the affairs of the company; or

(b) on an application made to it by any other person or otherwise, if it is satisfied that there are circumstances suggesting that

 

(i) the business of the company is being conducted with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose, or in a manner oppressive to any of its members or that the company was formed for any fraudulent or unlawful purpose;

(ii) persons concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud, misfeasance or other misconduct towards the company or towards any of its members; or

(iii) the members of the company have not been given all the information with respect to its affairs which they might reasonably expect, including information relating to the calculation of the commission payable to a managing or other director, or the manager, of the company, order, after giving a reasonable opportunity of being heard to the parties concerned, that the affairs of the company ought to be investigated by an inspector or inspectors appointed by the Central Government and where such an order is passed, the Central Government shall appoint one or more competent persons as inspectors to investigate into the affairs of the company in respect of such matters and to report thereupon to it in such manner as the Central Government may direct:

Provided that if after investigation it is proved that -

(i) the business of the company is being conducted with intent to defraud its creditors, members or any other persons or otherwise for a fraudulent or unlawful purpose, or that the company was formed for any fraudulent or unlawful purpose; or

(ii) any person concerned in the formation of the company or the management of its affairs have in connection therewith been guilty of fraud, then, every officer of the company who is in default and the person or persons concerned in the formation of the company or the management of its affairs shall be punishable for fraud in the manner as provided in section 447.

 

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What is Power to call for information, inspect books and conduct inquiries What is power to Conduct of inspection and inquiry Section 206 and 207 of Indian Companies Act 2013

What is Report on inspection made What is Search and seizure What is Investigation into affairs of company Section 208,209 and 210 of Indian Companies Act 2013

What is Establishment of Serious Fraud Investigation Office Section 211 of Indian Companies Act 2013

What is Investigation into affairs of Company by Serious Fraud Investigation Office Section 212 of Indian Companies Act 2013

What is Investigation into companys affairs in other cases Section 213 of Indian Companies Act 2013

What is Security for payment of costs and expenses of investigation Firm, body corporate or association not to be appointed as inspector Section 214 and 215 of Indian Companies Act 2013

What is Investigation of ownership of company What is Procedure, powers, etc., of inspectors Section 216 and 217 of Indian Companies Act 2013

What is Protection of employees during investigation Section 218 of Indian Companies Act 2013

What is Power of inspector to conduct investigation into affairs of related companies, etc Seizure of documents by inspector Section 219 and 220 of Indian Companies Act 2013

 

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