Companies Act, 2013

Section 434

Appointment of receiver

⚡ Quick Answer Reference: Section 434 Companies Act

Provision: Section 434 of Companies Act
Act: Companies Act, 2013
Classification: corporate
Jurisdiction: India
Summary: This section allows the Central Government to appoint a receiver for a company's management if it's necessary. The receiver will have the same powers as the company's Board of Directors.

Statutory Content

What does Section 434 of Companies Act say?

If the Central Government is satisfied that it is necessary to do so, it may, by order, appoint a receiver for the management of the company, and may also direct that the receiver shall have and may exercise, in the name and on behalf of the company, all such powers as the Board of Directors might have exercised if the company had not been wound up.

Indian StandardSection 434, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 434 (India)

Court Pleading StandardSection 434 of the Companies Act, 2013

Canonical Web linkhttps://nyaya.cloud/acts/companies-act-2013/434

Embed this Section Card

Want to display this Section explanation card on your website? Copy and paste the HTML code below:

<iframe src="https://nyaya.cloud/api/widget/section?act=companies-act-2013&sec=434" width="100%" height="250" style="border:none; border-radius:8px;"></iframe>

Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

✓ VERIFIED FOR LEGAL ACCURACYReviewed & certified by Advocate Priya Menon (Bar Council ID: MAH/4521/2018).

AI Educational GuideAI-generated explanation for educational and research purposes. Original statutory text is preserved exactly.

Section Meaning & Purpose

What does Section 434 of Companies Act mean?

Plain English Explanation

This section allows the Central Government to appoint a receiver for a company's management if it's necessary. The receiver will have the same powers as the company's Board of Directors.

Practical Interpretation

In practice, this section gives the Central Government the authority to intervene in a company's management if it's deemed necessary. This can happen in situations where the company is facing financial difficulties or other challenges.

Core Legal Purpose

The core purpose of this section is to provide the Central Government with the power to appoint a receiver for a company's management, ensuring that the company's affairs are properly managed and its interests are protected.

Key Legal Elements

•The Central Government must be satisfied that it's necessary to appoint a receiver.
•The receiver must be appointed by order.
•The receiver must have the same powers as the company's Board of Directors.

Practical Example

Practical Example of Section 434 Companies Act

Suppose a company called 'Rajesh Enterprises' is facing financial difficulties and is unable to pay its debts. The Central Government may decide to appoint a receiver to manage the company's affairs. The receiver, Mr. Kumar, will have the same powers as the company's Board of Directors and will be responsible for making decisions regarding the company's management and operations.

Common Questions (FAQ)

Frequently Asked Questions about Section 434 Companies Act

Q: What is the punishment or consequence under Section 434 of Companies Act, 2013?

This section is a procedural provision and does not prescribe a penal punishment.

Q: Does this section apply to private individuals or public entities?

This section applies to companies, which can be either private or public entities.

Q: Is an offence under this section bailable or cognizable?

This section is a procedural provision and does not prescribe a penal punishment, so it is neither bailable nor cognizable.

Common Questions about Section 434 Companies Act

What is Section 434 of Companies Act?

Section 434 of the Companies Act, 2013 (Companies Act) defines and regulates "Appointment of receiver". In plain terms: This section allows the Central Government to appoint a receiver for a company's management if it's necessary. The receiver will have the same powers as the company's Board of Directors.

What are the elements of Section 434 of Companies Act?

The essential elements of Section 434 of Companies Act are: The Central Government must be satisfied that it's necessary to appoint a receiver.; The receiver must be appointed by order.; The receiver must have the same powers as the company's Board of Directors..

Landmark Case Laws