Investigation of ownership of company (Section 216 of the Companies Act, 2013) :

Section 216 of the Companies Act, 2013 came into force partially from 1st April, 2014 which provides for Investigation of ownership of company as under:

(i) As per sub section (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 company, 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.

(ii) 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 shares or debentures [Sub section (3)]

(iii) 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 obser ved in practice and which is relevant for the purposes of his investigation [Sub section (4)]