Power to order examination of promoters, directors, etc
Section 300 of the Companies Act, 2013 deals with power to order examination of promoters, directors, etc. Where an order has been made for the winding up of a company by the Tribunal, and the Company Liquidator has made a report to the Tribunal under this Act, stating that in his opinion a fraud has been committed by any person in the promotion, formation, business or conduct of affairs of the company s The Act came into force on 01 Apr 2014.
(1) Where an order has been made for the winding up of a company by the Tribunal, and the Company Liquidator has made a report to the Tribunal under this Act, stating that in his opinion a fraud has been committed by any person in the promotion, formation, business or conduct of affairs of the company since its formation, the Tribunal may, after considering the report, direct that such person or officer shall attend before the Tribunal on a day appointed by it for that purpose, and be examined as to the promotion or formation or the conduct of the business of the company or as to his conduct and dealings as an officer thereof.
(2) The Company Liquidator shall take part in the examination, and for that purpose he or it may, if specially authorised by the Tribunal in that behalf, employ such legal assistance as may be sanctioned by the Tribunal.
(3) The person shall be examined on oath and shall answer all such questions as the Tribunal may put, or allow to be put, to him.
(4) A person ordered to be examined under this section--
(a) shall, before his examination, be furnished at his own cost with a copy of the report of the Company Liquidator; and
(b) may at his own cost employ chartered accountants or company secretaries or cost accountants or legal practitioners entitled to appear before the Tribunal under section 432, who shall be at liberty to put to him such questions as the Tribunal may consider just for the purpose of enabling him to explain or qualify any answers given by him.
(5) If any such person applies to the Tribunal to be exculpated from any charges made or suggested against him, it shall be the duty of the Company Liquidator to appear on the hearing of such application and call the attention of the Tribunal to any matters which appear to the Company Liquidator to be relevant.
(6) If the Tribunal, after considering any evidence given or hearing witnesses called by the Company Liquidator, allows the application made under sub-section (5), the Tribunal may order payment to the applicant of such costs as it may think fit.
(7) Notes of the examination shall be taken down in writing, and shall be read over to or by, and signed by, the person examined, a copy be supplied to him and may thereafter be used in evidence against him, and shall be open to inspection by any creditor or contributory at all reasonable times.
(8) The Tribunal may, if it thinks fit, adjourn the examination from time to time.
(9) An examination under this section may, if the Tribunal so directs, be held before any person or authority authorised by the Tribunal.
(10) The powers of the Tribunal under this section as to the conduct of the examination, but not as to costs, may be exercised by the person or authority before whom the examination is held in pursuance of sub-section (9).
Section 300, 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.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Indusind Bank Ltd. vs The Official Liquidator, High Court of Bombay of M/s.j.b.diamonds Ltd. in Liqn., 8 Ors.
Court's Decision & Legal Precedent
On the Official Liquidator's complaint that the directors of the company in liquidation had not filed the statement of affairs and were not producing books and records, the Court held that the duty of the directors and officers to cooperate with the Liquidator is enforceable by direction of the Company Court, and appointed a Chartered Accountant to assist the Liquidator in the enquiry into the company's affairs while directing the directors to give access to documents and inspection.
On this section: It shows the machinery now in Section 300 at work: the Court orders an investigation into suspected fraud by the promoters and directors and directs their examination as a step preceding the Liquidator's report.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
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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… The Union of India (1973) 2 SCC 543, this Court held Section 286 of the Companies Act to be mandatory and violation thereof has been held to render the resolution passed in such meeting void. 54. He submitted that Resolutions passed in aforesaid meetings are also violative of section 300 of the Companies Act as in all of them arrangements and contracts in favour of two Directors namely Mr. R.P. Mittal and Mrs. Sarla Mittal have been discussed and voted upon by said two persons themselves. It is well settled that Directors act as fiduciaries when they conduct a Board meeting and as fiduciaries they …
Questions about Section 300
What have the courts held on Section 300 of the Companies Act?
Indusind Bank Ltd. vs The Official Liquidator, High Court of Bombay of M/s.j.b.diamonds Ltd. in Liqn., 8 Ors. (18 Nov 2015) is the leading judgment on this section among those set out below: It shows the machinery now in Section 300 at work: the Court orders an investigation into suspected fraud by the promoters and directors and directs their examination as a step preceding the Liquidator's report.
How do I find court cases under Section 300 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 300, section 300 Companies Act, section 300 of the Companies Act. People searching for it also type companies act 2014 section 300. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Indusind Bank Ltd. vs The Official Liquidator, High Court of Bombay of M/s.j.b.diamonds Ltd. in Liqn., 8 Ors. (18 Nov 2015).
What should I read with Section 300 of the Companies Act, and has it changed?
Its own text turns on section 432 (Right to legal representation), so none of them can safely be read on its own.
When did Section 300 of the Companies Act come into force?
Section 300 of the Companies Act, cited as Companies Act 300, 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 14 Oct 2026. This page is not a substitute for legal advice.