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CMA Final · Corporate and Economic Laws · Inspection, Inquiry and Investigation

Under the Companies Act, 2013, a Registrar is conducting an inquiry and calls for the books of account of a company. Which of the following is the Registrar entitled to do during that inspection or inquiry?

During an inspection or inquiry the Registrar or inspector may make copies of the books and papers and may place marks of identification in the books to show that inspection has been made. The provision gives no power of permanent seizure or arrest, and asset freezing belongs to the Tribunal.

  1. ASeize the original books permanently without giving any copies back
  2. BPlace marks of identification in the books in token of the inspection having been madeCorrect
  3. CArrest the directors who fail to produce the documents on the spot
  4. DDirect the Tribunal to freeze the assets of the company without any reference

Explanation

Section 207(2) allows the Registrar or inspector to make copies of books and papers and to place marks of identification in the books in token of inspection. The Act gives no power of permanent seizure or arrest in this provision, and freezing of assets is an order made by the Tribunal under section 221.

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