Section 207 of the Companies Act, 2013
Section 207 of the Companies Act, 2013 deals with the Powers of the Registrar or Inspector to Call for Information, Inspect Books, and Conduct Inquiries.
🔹 Section 207 – Conduct of Inspection and Inquiry
This section empowers the Registrar of Companies (RoC) or an Inspector to obtain necessary documents and explanations from a company during inspection or inquiry.
✅ Key Provisions:
📌 1. Power to Request Information (Section 207(1)):
The Registrar or Inspector can, during inspection or inquiry under the Act:
Require the company:
To produce books of accounts, papers, and other relevant documents.
To provide necessary explanations or information related to its affairs.
The company and its officers must comply without delay.
📌 2. Examination Under Oath (Section 207(2)):
The Registrar or Inspector may, if necessary, examine:
On oath, any current or former officer, employee, or any other person related to the company’s affairs.
⚠️ 3. Penalty for Non-compliance (Section 207(3)):
If any company or person:
Fails to furnish information or explanation,
Does not produce required documents,
Hinders or fails to assist the inspection or inquiry,
Then, such company and every officer in default shall be punishable with:
Fine which may extend to ₹1,00,000, and
In case of continuing failure, a further fine of ₹500 per day during which the failure continues.
📌 Objective:
To ensure that the Registrar or inspector can effectively carry out inspections and inquiries and that companies do not obstruct such official processes.
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