Section 210 of CA 2013 : Section 210: Investigation Into Affairs Of Company

Explanation using Example

Imagine a scenario where XYZ Pvt. Ltd. has been performing exceptionally well in the market. However, several minority shareholders start noticing discrepancies in the financial reports. They suspect that the company's management is involved in fraudulent activities.

These shareholders call for a special meeting and pass a special resolution stating that the affairs of XYZ Pvt. Ltd. ought to be investigated. This resolution is then forwarded to the Central Government.

Upon receiving this resolution, the Central Government, under Section 210(a) of The Companies Act, 2013, decides that it is necessary to investigate the company's affairs to protect the interest of the shareholders and the public. Therefore, the government appoints an inspector to conduct a thorough investigation into the company's financial activities and report back with findings.