Companies Act, 1956
Sec 235 -
Investigation of the affairs of a company.
(1) The Central Government may, where a report
has been made by the Registrar under sub-section (6) of section 234, or under
sub-section (7) of that section, read with sub-section (6) thereof, appoint one
or more competent persons as inspectors to investigate the affairs of a company
and to report thereon in such manner as the Central Government may direct.
(2) Where-
(a) in the case of a company having a share
capital, an application has been received from not less than two hundred
members or from members holding not less than one-tenth of the total voting
power therein, and
(b) in the case of a company having no share
capital, an application has been received from not less than one-fifth of the
persons on the company's register of members,
the Company Law Board may, after giving the
parties an opportunity of being heard, by order, declare that the affairs of
the company ought to be investigated by an inspector or inspectors, and on such
a declaration being made, the Central Government shall appoint one or more
competent persons as inspectors to investigate the affairs of the company and
to report thereon in such manner as the Central Government may direct.