Section 235 - Investigation of the affairs of a company. - Companies Act, 1956

Investigation Investigation of the affairs of a company. [1] [235. (1) The Central Government may, where a report has been made by the Registrar under sub-section (6) of section 234, or under sub-section (7) of that section, read with sub-section (6) thereof, appoint one or more competent persons as inspectors to investigate the affairs of a company and to report thereon in such manner as the Central Government may direct. (2) Where ___ (a) in the case of a company having a share capital, an application has been received from not less than two hundred members or from members holding not less than one-tenth of the total voting power therein, and (b) in the case of a company having no share capital, an application has been received from not less than one-fifth of the persons on the company's register of members, the [2] [Central Government] may, after giving the parties an opportunity of being heard, by order, declare that the affairs of the company ought to be investigated by an inspector or inspectors, and on such a declaration being made, the Central Government shall appoint one or more competent persons as inspectors to investigate the affairs of the company and to report thereon in such manner as the Central Government may direct [3] ]. -------------------------------------- Notes:- [1] Substituted by the Companies (Amendment) Act, 1988, section 36 for section 235, w.e.f. 31-5-1991 which read as under: "235. Investigation of affairs of company on application by members or report by registrar. The Central Government may appoint one or more competent person(s) as inspectors to investigate the affairs of any company and to report thereon in such manner as the Central Government may direct, (a) in the case of a company having a share capital, on the application either of not less than two hundred members or of members holding not less than one-tenth of the total voting power therein; (b) in the case of a company not having a share capital, on the application of not less than one-fifth in number of the persons on the company's register of members; (c) in the case of any company, on a report by the Registrar under sub-section (6), or sub-secion (7), read with sub-section (6), of section 234." [2] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [3] Fees prescribed is Rs. 2500, w.e.f. 1-4-2000. On notification of the commencement of the amendment, power will be transferred to the Central Government.