Section 312 of the Companies Act, 2013
🔹 Section 312 of the Companies Act, 2013
Title: Power to Call for Information, Inspect Books and Conduct Inquiries
✅ Overview:
Section 312 gives the Central Government the power to call for information, inspect books, and conduct inquiries into the affairs of a company to ensure proper compliance and to investigate any suspected irregularities.
🔍 Key Provisions:
(1) The Central Government may, by order, require any company or its officers to:
Produce books, papers, or other documents,
Provide information or explanations,
Allow inspection of books and documents,
Or conduct inquiries into the affairs of the company.
(2) The order can be made:
On reasonable grounds to believe that the company is being managed in a manner prejudicial to the interests of the company or its members,
Or in the interest of public.
(3) The company and its officers must comply with such orders and furnish the required information or documents.
📝 Summary:
| Power Granted | Description |
|---|---|
| Call for information | Request company info, documents, explanations |
| Inspection | Inspect books and records |
| Conduct inquiries | Investigate company affairs |
| Authority | Central Government |
⚠️ Failure to Comply:
Non-compliance with an order under Section 312 can lead to penalties under the Companies Act.
📌 Purpose:
To empower the government to ensure transparency, accountability, and lawful management of companies.
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