Section 323 of the Companies Act, 2013
**Section 323 of the Companies Act, 2013** deals with the **Power of the Tribunal to Call for Information or Conduct Investigation**.
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### 📘 **Section 323 – Power of Tribunal for Investigation**
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### ✅ **Key Provisions:**
* The **National Company Law Tribunal (NCLT)** has the authority to **call for information, inspect books, and conduct investigations** into the affairs of a company.
* This power can be exercised:
* **Suo motu** (on its own),
* Or on the application of any member, depositor, creditor, or Registrar.
* The investigation can be ordered if the Tribunal has **reason to believe** that:
* The company is **being managed fraudulently or in a manner prejudicial to public interest or the interest of the company’s members or creditors**,
* Or the company is **engaged in activities oppressive to minority shareholders**.
* The Tribunal can appoint inspectors or any person to carry out the investigation.
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### ⚠️ **Outcome:**
* Based on the investigation report, the Tribunal may take necessary actions including penalties, winding up, or directions to the company.
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### 📌 **Example:**
If shareholders allege that the management of XYZ Ltd. is involved in fraudulent activities harming the company, they can apply to the NCLT under Section 323 for investigation.
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