Q.Why is an investigation committee appointed?

An investigation committee is appointed to inquire into and report on the affairs of the company where fraud, mismanagement or irregularities are suspected. When there is a doubt or complaint about the working of the company — such as suspected fraud, misuse of funds, mismanagement or irregularities in accounts — an investigation committee (or investigation into the affairs of the company) is ordered. Its purposes are: - to examine the books, records and affairs of the company, - to find out the true financial and managerial position, - to fix responsibility for any wrongdoing, and - to submit a report with …