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

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.

FAQ’s

1. Who can make application under section 210 of Companies Act 2013?
   (c) in public interest, it may order an investigation into the affairs of the company. (2) Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company.
2. What are annual accounts maintained under section 210 of Companies Act?
   at its annual general meeting instead of a profit and loss account, and all references to” profit and loss account”,” profit” and” loss” in this section and elsewhere in this Act, shall be construed, in relation to such a company, as references respectively to the” income and expenditure account”,” the excess of income 
3. When can the provision of section 210 of Criminal Procedure Code be invoked?
   210. Procedure to be followed when there is a complaint case and police investigation in respect of the same offence.