Amended and updated notes on section 222 of Companies Act 2013. Detail discussion on provisions and rules related to imposition of restrictions upon securities.
Chapter XIV (Sections 206–229) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Inspection, Inquiry and Investigation. Section 222 of CA 2013 provides for imposition of restrictions upon securities.
Recently, we have discussed in detail section 221 (Freezing of assets of company on inquiry and investigation) of CA 2013. Today, we learn the provisions of section 222 of Companies Act 2013.
The provisions of section 222 are effective from 1-June-2016. You may refer Notification No. S.O. 1934(E) issued dated 01-06-2016. In this article, you will learn detail of the provisions of section 222 of the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XIV |
| Chapter Name | Inspection, Inquiry and Investigation |
| Section No. | 222 |
| Section Name | Imposition of restrictions upon securities |
| Monthly Updated Edition | Company Law PDF |
Section 222 of Companies Act 2013: Imposition of restrictions upon securities
Section 222 shall come into force on 1st June, 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.
(1) Where it appears to the Tribunal, in connection with any investigation under section 216 or on a complaint made by any person in this behalf, that there is good reason to find out the relevant facts about any securities issued or to be issued by a company and the Tribunal is of the opinion that such facts cannot be found out unless certain restrictions, as it may deem fit, are imposed, the Tribunal may, by order, direct that the securities shall be subject to such restrictions as it may deem fit for such period not exceeding three years as may be specified in the order.
(2) Where securities in any company are issued or transferred or acted upon in contravention of an order of the Tribunal under sub-section (1), the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both.