What is Freezing of assets of company on inquiry and investigation? What is Imposition of restrictions upon securities? Section 221 and 222 of Indian Companies Act 2013

Freezing of assets of company on inquiry and investigation and Imposition of restrictions upon securities are defined under Section 221 and 222 of Indian Companies Act 2013. Provisions under these Sections are:

Section 221 of Indian Companies Act 2013 "Freezing of assets of company on inquiry and investigation"

(1) Where it appears to the Tribunal, on a reference made to it by the Central Government or in connection with any inquiry or investigation into the affairs of a company under this Chapter or on any complaint made by such number of members as specified under sub-section (1) of section 244 or a creditor having one lakh amount outstanding against the company or any other person having a reasonable ground to believe that the removal, transfer or disposal of funds, assets, properties of the company is likely to take place in a manner that is prejudicial to the interests of the company or its shareholders or creditors or in public interest, it may by order direct that such transfer, removal or disposal shall not take place during such period not exceeding three years as may be specified in the order or may take place subject to such conditions and restrictions as the Tribunal may deem fit.

 

Punishment for violation of Section 221 of Companies Act 2013

(2) In case of any removal, transfer or disposal of funds, assets, or properties of the company in contravention of the order of the Tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

Section 222 of Indian Companies Act 2013 "Imposition of restrictions upon securities"

(1) Where it appears to the Tribunal, in connection with any investigation under section 216 or on a complaint made by any person in this behalf, that there is good reason to find out the relevant facts about any securities issued or to be issued by a company and the Tribunal is of the opinion that such facts cannot be found out unless certain restrictions, as it may deem fit, are imposed, the Tribunal may, by order, direct that the securities shall be subject to such restrictions as it may deem fit for such period not exceeding three years as may be specified in the order.

(2) Where securities in any company are issued or transferred or acted upon in contravention of an order of the Tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with
both.

What is Freezing of assets of company on inquiry and investigation? What is Imposition of restrictions upon securities? Section 221 and 222 of Indian Companies Act 2013

What is Inspector’s report? What actions to be taken in pursuance of inspector’s report? Section 223 and 224 of Indian Companies Act 2013

Who will bear Expenses of investigation? Voluntary winding up of company, etc, not to stop investigation proceedings. Section 225 and 226 of Indian Companies Act 2013

Legal advisers and bankers not to disclose certain information and Investigation, etc, of foreign companies.  Section 227 and 228 of Indian Companies Act 2013

What is penalty for furnishing false statement, mutilation, destruction of documents? What is power to compromise or make arrangements with creditors and members?  Section 229 and 230 of Indian Companies Act 2013

What is Power of Tribunal to enforce compromise or arrangement? What is Merger and amalgamation of companies?  Section 231 and 232 of Indian Companies Act 2013

What is Merger or amalgamation of certain companies? What is merger or amalgamation of company with foreign company? Section 233 and 234 of Indian Companies Act 2013

What is Power to acquire shares of shareholders dissenting from scheme or contract approved by majority? Section 235 of Indian Companies Act 2013

What is Purchase of minority shareholding? Section 236 of Indian Companies Act 2013

What is Power of Central Government to provide for amalgamation of companies in public interest? Section 237 of Indian Companies Act 2013

What is Registration of offer of schemes involving transfer of shares? Preservation of books and papers of amalgamated companies, What is the Liability of officers in respect of offences committed prior to merger, amalgamation, etc? Section 238, 239 and 240 of Indian Companies Act 2013

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap