Monday, 21 April 2014

(12.13.5) Powers of the Inspectors



1. Under s.239, the inspector, appointed under s.235 or 237, is empowered to investigate the affairs of any other body corporate which is, or has at any relevant time been: (a) the company’s subsidiary or holding company or a subsidiary of its holding company, or a holding company of its subsidiary; (b) managed by any person as managing director or manager or who is, or was at the relevant time either the managing director or manager of the company; (c) managed by the company or whose Board of Directors comprises of nominees of the company or is accustomed to act in accordance with the directions or instructions of: (i) the company, or (ii) any the directors of the company, or  (iii) any company, any of whose directorship is Held by the employees or nominees of those having the control and management of the first mentioned company; (d) the company’s managing director or manager.

  2. The inspector may require any officer and other employees to preserve and produce to him or any person authorised by him all books and papers of, or relating to the company, which are in their custody or power.

  3. The inspector may, with the prior approval of the Central Government, require anybody corporate to furnish or produce such books and papers as he may consider necessary if the furnishing of such information or the production of such books and papers is relevant or necessary for the purposes of his investigation. The inspector is further empowered to keep such books in his custody for 6 months.

  4. An inspector is also empowered to examine on oath: (a) any officers or employees of the company, (b) any other person provided prior approval of the Central Government has been obtained.

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