Section 321 of the Companies Act, 2013
Section 321 of the Companies Act, 2013
– Power to call for information, inspect books and conduct inquiries
📜 Summary of Section 321:
Section 321 empowers the Central Government or any person authorized by it to:
Call for information or inspect books of any company,
Conduct inquiries into the affairs of the company,
Do so for purposes such as ensuring compliance with the Companies Act or investigating complaints.
✅ Key Provisions:
Authority to Inspect and Inquire:
The Central Government or an authorized officer may:
Require the company or any officer to produce books, papers, and documents,
Inspect such records,
Conduct inquiries as necessary.
Purpose:
To verify whether the company is complying with provisions of the Companies Act or other applicable laws,
To investigate complaints or matters of public interest.
Cooperation by Company:
Companies and their officers are required to cooperate and provide the necessary documents or information.
Protection of Information:
The law may provide safeguards to ensure confidential information is protected during such inspections.
🧾 Example:
If the Ministry of Corporate Affairs suspects irregularities in ABC Ltd., officers authorized by the government can call for the company’s books of accounts and conduct an inquiry.
📌 Summary Table:
| Power | Details |
|---|---|
| Who | Central Government or authorized persons |
| What | Call for information, inspect books, conduct inquiries |
| When | For compliance check or investigation |
| Obligation | Company must cooperate |
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