valid as on 27/05/2024

Section 216. Investigation of ownership of company
Effective from 01-04-2014 and font in blue from 01-06-2016

(1) Where it appears to the Central Government that there is a reason so to do, it may appoint one or more inspectors to investigate and report on matters relating to the , and its membership for the purpose of determining the true persons—

(a) who are or have been financially interested in the success or failure, whether real or apparent, of the company; or

(b) who are or have been able to control or to materially influence the policy of the  company.

(2) Without prejudice to its powers under sub-section (1), the Central Government shall appoint one or more inspectors under that sub-section, if the , in the course of any proceeding before it, directs by an order that the affairs of the company ought to be investigated as regards the membership of the company and other matters relating to the company, for the purposes specified in sub-section (1).

(3) While appointing an inspector under sub-section (1), the Central Government may define the scope of the investigation, whether as respects the matters or the period to which it is to extend or otherwise, and in particular, may limit the investigation to matters connected with particular or .

(4) Subject to the terms of appointment of an inspector, his powers shall extend to the investigation of any circumstances suggesting the existence of any arrangement or understanding which, though not legally binding, is or was observed or is likely to be observed in practice and which is relevant for the purposes of his investigation.

2(20) Company means a company incorporated under this Act or under any previous company law
Substituted vide Companies (Amendment) Act, 2017 dated 03.01.2018 w.e.f., 13.06.2018. To view the notification,Click Here
Inserted vide Companies (Amendment) Act, 2017 dated 03.01.2018 w.e.f., 13.06.2018. To view the notification,Click Here
2(90) Tribunal means the National Company Law Tribunal constituted under section 408
vide notification S.O 1934(E). To view the notification,Click Here
2(84) Share means a share in the share capital of a company and includes stock
2(30) Debenture, includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not

Provided that— (a) the instruments referred to in Chapter III-D of the Reserve Bank of India Act, 1934; and

(b) such other instrument, as may be prescribed by the Central Government in consultation with Reserve Bank of India, issued by a company,

shall not be treated as debenture;

Commencement Notification dated 13.06.2018

Enforcement Notification S.O. 1934(E) dated 01/06/2016

Enforcement Notification S.O. 902(E) dated 26/03/2014

The Companies (Amendment) Act, 2017 (Effective from 03.01.2018)

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