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  • Writer's pictureShruti Sharma

Section 210 of the Companies Act, 2013- Investigation into affairs of company.

Updated: Oct 7, 2022





The investigation's primary goal is to gather evidence, identify any illegal acts or infractions, and then determine the appropriate course of action. The act's Section 210 stipulates:

(a)Investigation according to the central government's assessment

Where the central government is of the opinion, that it is necessary to investigate the affairs of a company:

1) On the receipt of a report of the Registrar or inspector under the section to 208.

2) Upon receiving notice of a special resolution issued by a firm stating that the company's affairs should be investigated, or (each special resolution must be submitted on Form MGT-14 in accordance with Section 117(3)(a)).

3) If it is in the public interest, it may direct an inquiry into the business's operations.

b) a tribunal or court's probe of the order

The central government shall order an investigation into the affairs of a company when a court or tribunal orders one in any process before it that the affairs of a company should be looked into.

(c)the selection of inspectors

For the purposes of this provision, the central government may designate one or more individuals as inspectors, tasked with looking into the company's business and reporting back in any manner the central government deems appropriate.

Before appointing an inspector under sub-section (3) of Section 210, the Central Government may compel the applicant to provide Security under Rule 5 of The Companies (Inspection, Investigation, and Inquiry) Rules, 2014.

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