Investigation of ownership of company
Section 216 of the Companies Act, 2013 deals with investigation of ownership of company. 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 The Act came into force on 01 Apr 2014.
(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 1[company; or].
2[(c) who have or had beneficial interest in shares of a company or who are or have been beneficial owners or significant beneficial owner of a company].
(2) Without prejudice to its powers under sub-section (1), the Central Government shall appoint one or more inspectors under that sub-section, if the Tribunal, in the course of any proceeding before it, directs by an order that the affairs of the company ought to be investigated as regards the membership of the company and other matters relating to the company, for the purposes specified in sub-section (1).
(3) 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.
(4) 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 observed in practice and which is relevant for the purposes of his investigation.
Section 216, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Just because, another view is possible, the bail granted should not be cancelled. If the order granting anticipatory bail is passed without considering the relevant material, in that eventuality the bail can be cancelled. According to him, since the amendment to Section 216 of the Companies Act came into operation in the year 2018, it has no retrospective effect and, therefore, disqualification provided under the Companies Act is not at all applicable to Mr. Mehadia. He further submits that Mr. Mehadia was never the Director of NVCC, but he was only President. Therefore, it cannot be …
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… Similarly, the Singapore Court examined the issue about the arbitrability of the dispute in the context of minority oppression claims under Section 216 of the Companies Act which read as under:- Personal remedies in cases of oppression or injustice 216 .—(1) Any member or holder of a debenture of a company … may apply to the Court for an order under this section on the ground — (a) that the affairs of the company are being conducted or the …
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 216
What does Section 216 of the Companies Act deal with?
Section 216 of the Companies Act is headed "Investigation of ownership of company". 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
How do I find court cases under Section 216 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 216, section 216 Companies Act, section 216 of the Companies Act. People searching for it also type companies act 216a and companies act 2014 section 216. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 216 of the Companies Act, and has it changed?
3 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently Commencement Notification under Section 1(3) of the Companies Act, 2013 and Notification constituting the Benches of National Company Law Tribunal (2016).
When did Section 216 of the Companies Act come into force?
Section 216 of the Companies Act, cited as Companies Act 216, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.