Inspection, Inquiry and Investigation – Test 1

Who has the power to call for information, insect books and conduct inquires u/s 206 of the Companies Act, 2013

What is the circumstance in which notice can be served for inspection of books etc. u/s 206(3) of Companies Act, 2013

If a company fails to furnish any information or explanation or produce any document required under Sec. 206, the company and every officer of the company, who is in default shall be punishable with a fine upto ________

A notice was sent to Mr. Left by the registrar to furnish the information related to a business transacted during his tenure in the X company. Mr. Left ignored the notice considering that he is no more an employee of X company. Choose the right option in the light of the Companies Act, 2013

If any director or officer of the company disobeys the direction issued by the Registrar or the Inspector u/s 207, the director or the officer shall be punishable

If a director or an officer of the company has been convicted of an offence u/s 207, the director or the officer shall

The Registrar or inspector shall, after the inspection of the books of account or an inquiry u/s 206 and other books and papers of the company u/s section 207, submit a report in writing to

The Registrar or Inspector is required to obtain the approval of which authority before initiating Search and seizure u/s 209 of Companies Act, 2013

The Registrar or inspector shall return the books and papers seized, as soon as may be, and in any case not later than ______ day after such seizure, to the company from whose custody or power such books or papers were seized.

Central Government may order an investigation into the affairs of the company in certain circumstances except:

A majority of the Board of directors of M/s High Value InfoTech Ltd. have realized that some of the business activities caried out in the name of the company is not in the interest of either the company or its

The shareholders of Kumar Ltd. passed a special resolution that the affairs of the company ought to be investigated. The company submitted the special resolution to the Central Government.

The ________ shall, by notification, establish an office to be called the SFIO to investigate frauds relating to a company u/s 211 of Companies Act, 2013.

Offences covered u/s  447 of this Act shall be cognizable and no person accused of any such offence shall be released on bail. However, on the direction of Special court, following person may be released on bail.

Offences covered u/s  447 of this Companies Act, 2013 shall be cognizable and no person accused of any such offence shall be released on bail. However, a person, who, is under the age of 16 years or is a women or is sick of inform, may be released on bail, if the __________ so directs.

The SFIO shall submit the investigation report to the ________ on completion of the investigation u/s 212 of Companies Act, 2013

Mrs. Preeti, a lady aged about 32 years and Managing Director of M/s Growmore plantations Ltd., has been arrested for an offence covered under section 447 of the Companies Act, 2013 on a complaint made by the Director, Serious Fraud Investigation Officer. Mrs. Preeti seeks your legal advise as to the conditions under which she can be released on bail.

The shareholders of Kumar Ltd. passed a special resolution that the affairs of the company ought to be investigated. The company submitted the special resolution to the Central Government. Considering the relevant provisions of the Companies Act, 2013, choose the correct option regarding the power of the Central Government to order an investigation.

C.G. may before appointing an inspector u/s 210 or u/s 213, require the applicant to give such security _______ as may be prescribed, for payment of the costs and expenses of the investigation u/s 214 of Companies Act, 2013.

Which of the following persons can be appointed as inspector u/s 215 of Companies Act, 2013?

Where it appears to the C.G. that there is a reason so to do, it may appoint one or more inspectors to investigate and report on matters relating to the company, and its membership for the purpose of determining the true persons-

If any director or officer of the company disobeys the direction issued by the Registrar or the inspector u/s 217, the director or the officer shall be punishable

Damage Ltd., the Company wanted to suspend Mr. Z., the CFO of the Company during the pendency of an investigation being conducted under the provisions of the Companies Act, 2013 on the order of Tribunal. The Company approached the Tribunal on 3rd January, 2018 for the proposed action. The Company on 15th February, 2018 passed an order of suspension without waiting for he orders from Tribunal. Comment upon the action taken by the Company with reference to the relevant provisions of the Act.

During investigations conducted on the affairs of a company in the public interest, the inspector observed that the directors of the company had been acting on the instructions of the holding company and he proceeded to investigate the holding company. Is Inspector permitted to do under the provisions of the Companies Act, 2013?

As per Sec. 221 of Companies Act, 2013, where it appears to the Tribunal that there exists reasonable ground to believe that the removal, transfer or disposal of funds, assets, properties of the company is likely to take place in a manner that is prejudicial to the interests of the company or its shareholders or creditors or in public interest, it may by order direct that such transfer, removal or disposal shall not take place during such period not exceeding ___________ as may be specified in the order or may take place subject to such conditions and restrictions as the Tribunal may deem fit.

In case of any removal, transfer or disposal of funds, assets, or properties of the company in contravention of the order of the Tribunal u/s 221(1), the company shall be punishable  with fine
________.

Remedial Pharma Limited, over the years, enjoys a high reputation in the market and its general reserves are ten times more than the paid-up capital of the company. There is a serious apprehension of cornering the share of the company by a group of unscrupulous persons likely to result in change in the Board o directors which may be prejudicial to the public interest. The company seeks your advice as to how it can block the transfer of shares of the company under the provisions of the Companies Act, 2013.

The Central Government ordered an investigation u/s 2016 of Companies Act, 2013 against M/s Green Wood Limited for determining the true membership of the company. In connection with this investigation a reference was made to the Tribunal. It appears to the Tribunal that there is a good reason to find out the relevant facts about the company and the Tribunal is of the opinion that unless restrictions are imposed on further issue of such equity shares, the purpose cannot be solved. Referring to the provisions of the Companies Act, 2013 and Rules framed in this regard, what is time period for which such a restriction can be imposed by the Tribunal?

An inspector appointed under Chapter XIV of Companies Act, 2013 shall submit a final report to the Central Government. Report shall be in writing or printed as the Central Government may direct. Copy of the report may be obtained by

The expenses of, and incidental to, an investigation by an inspector appointed by the Central Government under Chapter XIV of Companies Act, 2013 other than expenses of inspection u/s 214 shall be defrayed in the first instance by the

A meeting of members of ABC Limited was convened under the order of the Tribunal to consider a scheme of compromise and arrangement. Notice of the meeting was sent in the prescribed manner to all the 600 members holding in the aggregate 25,00,000 shares. The meeting was attended by 450 members holding 15,00,000 shares. 210 members holding 11,00,000 shares voted in favor of the scheme. 180 members holding 3,00,000 shares voted against the scheme. The remaining members abstained from voting. Examine with reference to the relevant provisions of the Companies Act, 2013 whether the scheme is approved by the requisite majority.