Shruti Sharma
Rule 5 of Companies (Inspection, Investigation and Inquiry) Rules, 2014- Security
Updated: Oct 4, 2022
#rule5
#rules
#security
#inspection
#investigation
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.
1. The first clause states that before appointing an inspector under sub-section (3) of Section 210, the Central Government may require the applicant to provide security of not more than twenty-five thousand rupees for payment of inquiry fees and expenditures in accordance with the criteria set out below—
S.N. Turnover as per the previous year's balance sheet (Rs.) Amount of security (Rs.)
1 Turnover up to Rs. 50 crore Rs. 10,000
2 Turnover more than Rs. 50 crore and up to 200 crore Rs. 15,000
3 Turnover more than Rs. 200 crore Rs. 25,000
2. The second year's clause states that If the investigation leads to prosecution, the applicant's security will be refunded.