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

Inspector’s report and actions to be taken in pursuance of inspector’s report are defined under Section 223 and 224 of Indian Companies Act 2013. Provisions under these Sections are:

Section 223 of Indian Companies Act 2013 "Inspector’s report"

(1) An inspector appointed under this Chapter may, and if so directed by the Central Government shall, submit interim reports to that Government, and on the conclusion of the investigation, shall submit a final report to the Central Government.

(2) Every report made under sub-section (1) shall be in writing or printed as the Central Government may direct.

(3) A copy of the report made under sub-section (1) may be obtained by making an application in this regard to the Central Government.

 

(4) The report of any inspector appointed under this Chapter shall be authenticated either -

(a) by the seal of the company whose affairs have been investigated; or (b) by a certificate of a public officer having the custody of the report, as provided
under section 76 of the Indian Evidence Act, 1872, and such report shall be admissible in any legal proceeding as evidence in relation to any matter contained in the report.

(5) Nothing in this section shall apply to the report referred to in section 212.

Section 224 of Indian Companies Act 2013 "Actions to be taken in pursuance of inspector’s report"

(1) If, from an inspector’s report, made under section 223, it appears to the Central Government that any person has, in relation to the company or in relation to any other body corporate or other person whose affairs have been investigated under this Chapter been guilty of any offence for which he is criminally liable, the Central Government may prosecute such person for the offence and it shall be the duty of all officers and other employees of the company or body corporate to give the Central Government the necessary assistance in connection with the prosecution.

(2) If any company or other body corporate is liable to be wound up under this Act and it appears to the Central Government from any such report made under section 223 that it is expedient so to do by reason of any such circumstances as are referred to in section 213, the Central Government may, unless the company or body corporate is already being wound up by the Tribunal, cause to be presented to the Tribunal by any person authorised by the Central Government in this behalf -

(a) a petition for the winding up of the company or body corporate on the ground that it is just and equitable that it should be wound up;

(b) an application under section 241; or

(c) both.

(3) If from any such report as aforesaid, it appears to the Central Government that proceedings ought, in the public interest, to be brought by the company or any body corporate whose affairs have been investigated under this Chapter -

(a) for the recovery of damages in respect of any fraud, misfeasance or other misconduct in connection with the promotion or formation, or the management of the affairs, of such company or body corporate; or

(b) for the recovery of any property of such company or body corporate which has been misapplied or wrongfully retained, the Central Government may itself bring proceedings for winding up in the name of such
company or body corporate.

(4) The Central Government, shall be indemnified by such company or body corporate against any costs or expenses incurred by it in, or in connection with, any proceedings brought by virtue of sub-section (3).

(5) Where the report made by an inspector states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an applicationbefore the Tribunal for appropriate orders with regard to disgorgement of such asset, property, or cash, as the case may be, and also for holding such director, key managerial personnel, officer or other person liable personally without any limitation of liability.

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

 

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