Section 226 of CA 2013 : Section 226: Voluntary Winding Up Of Company, Etc, Not To Stop Investigation Proceedings

Explanation using Example

Imagine a company, XYZ Private Limited, is suspected of financial irregularities and fraudulent activities. The government decides to launch an investigation into the company's affairs under the Companies Act, 2013. During this time:

1. A group of shareholders file an application under section 241, claiming that the company's affairs are being conducted in a manner prejudicial to public interest or oppressive to them.
2. Meanwhile, the board of XYZ Private Limited passes a special resolution for voluntary winding up in an attempt to evade the investigation.
3. Simultaneously, a creditor files a petition for the winding up of the company before the Tribunal due to non-payment of dues.

According to Section 226 of the Companies Act, 2013, the investigation into XYZ Private Limited will continue despite these developments. The investigation will not be halted by the application under section 241, the special resolution for voluntary winding up, or the pending winding up proceedings before the Tribunal. If the Tribunal orders the winding up of the company, the inspector will inform the Tribunal of the ongoing investigation, and the Tribunal may take appropriate actions. Directors and employees will still need to participate in the investigation and will be held accountable for any findings made by the inspector.