Section 302 of the Companies Act, 2013
Section 302 of the Companies Act, 2013 deals with the Power of Central Government to appoint Inspector for investigating a company’s affairs.
📜 Section 302 – Power of Central Government to Appoint Inspector
✅ Key Provisions:
Authority:
The Central Government has the power to appoint one or more inspectors to investigate the affairs of a company.
Circumstances for Appointment:
If the Central Government is of the opinion that:
It is necessary or expedient to do so in the public interest,
Or on the application of the company, its members, creditors, or any other person interested in the company.
Scope of Investigation:
The inspectors may investigate the company’s books, accounts, papers, documents, and other records,
They may also examine officers, employees, agents of the company,
They have powers to gather information regarding the company's affairs.
Report:
Inspectors must submit a report of their findings to the Central Government.
⚖️ Purpose:
To enable the government to conduct a detailed investigation into the company’s affairs when there are reasonable grounds for suspicion of fraud, mismanagement, or other irregularities.
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