A company's directors are suspected of breaching their duties and committing fraud. An investigator appointed by the Ministry of Corporate Affairs seeks production of company records and examination of the company's officers. Under which section of the Companies Act, 2013 is the power to investigate and compel production of documents prescribed?

Solution

Section 213 of the Companies Act, 2013 deals with "Power of investigator to compel production of books and papers". The section provides that "An investigator appointed under section 211 shall, for the purpose of investigating into the affairs of a company...have power to require any person to produce or furnish any books, records, papers, documents and other property in the custody or under the control of such person." This power is critical in corporate investigations. Section 206 addresses registration of companies, Section 207 addresses government companies, Section 211 addresses appointment of investigators (the investigator framework), but Section 213 specifically grants the power to compel production of documents and records.