Section 210 of the Companies Act, 2013
🔹 Section 210 of the Companies Act, 2013
Title: Investigation into Affairs of Company
✅ Overview:
Section 210 empowers the Central Government to order an investigation into the affairs of a company if certain conditions are met.
🔍 Key Provisions:
(1) The Central Government may order an investigation into the affairs of a company:
On the report of the Registrar or an inspector, or
On intimation by a special resolution passed by the company, or
In public interest,
and direct inspectors to investigate the affairs of the company and report.
(2) The Central Government may also, if it thinks it necessary, direct such an investigation to be conducted by the Serious Fraud Investigation Office (SFIO).
🔸 SFIO is a specialized agency under the Ministry of Corporate Affairs (MCA) that deals with complex financial frauds.
(3) Where such investigation has been ordered, the provisions of this Chapter (Chapter XIV – Inspection, Inquiry, and Investigation) shall apply to the affairs of the company.
📝 Purpose of Section 210:
To allow for official scrutiny of a company’s conduct, especially where:
Fraud is suspected,
There is evidence of mismanagement,
Or when it's in the interest of shareholders or the public.
📌 Related Sections:
Section 211: Establishment of SFIO
Section 212: Investigation by SFIO
Section 213: Investigation into company’s affairs in other cases (via Tribunal)
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