The shareholders competent to make n application to CLB are

(i) in case of a company having share capital, not less than 200 members or members holding not less than 1j10th of the total voting power therein;

(ii) in case of a company having no share capital, not less than 1j5th of the persons

on the company’s register of members.

The application by members should be supported by necessary evidence to show

that the applicants have good reasons for requiring the investigation (Sec. 236).

The CLB, after hearing the parties, may declare that the affairs of the company ought to be investigated and on such declaration, the Central Government shall appoint one or more Inspectors to investigate the affairs of the company in such manner as directed by the Central Government.