Companies Act

Section 457 of the Companies Act, 2013: Non-Disclosure of Information in Certain Cases (2026 Guide) 

When there are financial irregularities or fraud in a company, many times employees, shareholders, or anyone else inform the authorities about it. But many do not want to complain for fear of revealing their identity. Section 457 of the Companies Act, 2013 plays an important role in dealing with this problem. 

This section provides legal protection against the disclosure of the source of information related to a specific investigation. So, the identity of the person providing information for the investigation cannot be easily disclosed. This guide discusses the meaning of Section 457, its relationship with Section 210, and important issues related to compliance in 2026. 

What is Section 457 of the Companies Act, 2013?  

Section 457 of the Companies Act, 2013 is titled “non-disclosure of information in certain cases.” This helps to keep the source of information related to a specific company investigation confidential. 

Under this section, the Registrar of Companies (ROC), government officers, and other persons cannot be compelled to disclose the source of certain information. This protection may be applicable before any court, tribunal, or other authority. 

However, this protection does not apply to all allegations. The information must have helped the Central Government to order an investigation under Section 210 or must be important or relevant to that investigation. 

The source of information is protected under this section. But every document or evidence connected with the investigation does not automatically become secret. 

Section 457 at a Glance 

Key element	What it means
Protected persons	Registrar, government officers, and other persons
Protection provided	Non-disclosure of the source of qualifying information
Authorities covered	Courts, Tribunals, and other authorities
Relevant investigation	Investigation ordered under Section 210
Legal effect	Overrides conflicting provisions of other laws, subject to its scope

How Does Section 457 Link to Section 210? 

Section 210 of the Companies Act, 2013 empowers the Central Government to order an investigation into the working of a company in certain circumstances. 

An investigation may be required based on a report by the Registrar or Inspector. The matter of investigation may also come to the fore if the company passes a special resolution. The Central Government can also take action if the investigation is required in the public interest. 

Section 457 is important. This section protects the source of information from disclosure where that information triggered the investigation or the source of information where it is important for the investigation. However, the protection of Section 457 does not apply merely because a complaint is filed with the ROC. The information must have a specific connection with the investigation under Section 210. 

What Does Section 457 Protect? 

There is a certain limit to the protection of Section 457. Understanding this helps companies and compliance teams comply with the section. 

Key Protections 

●      Identification of the source of information: The person concerned cannot be compelled to disclose the source of information if certain conditions are met. 

●      Relation to investigation: This protection may apply if the information helps to initiate a Section 210 investigation or is important to the investigation. 

●      Effect on other laws: The section contains an overriding clause. Therefore, the protection of Section 457 may be applicable in the event of conflict with any other law. 

What Section 457 Does Not Automatically Protect? 

•      Every document held by the authority. 
•      All complaints filed with the ROC. 
•      Disclosure of any irregularities under the Companies Act to every person in all circumstances. 
•      Key information or evidence related to the investigation from being examined in court. 

So, Section 457 should not be seen as a rule to keep all information secret. Its main goal is to protect the identity of the source of information in specific investigations. 

Why Is Section 457 Important for Companies? 

Section 457 plays an important role in company investigations. It helps protect the identity of the source of information. Employees or anyone else feel more comfortable providing information about irregularities. The company authorities also must take the matter of the complaint seriously. 

Stakeholder	Practical significance
Employees and informants	Helps protect the source of qualifying information from compelled disclosure
Company management	Must address allegations even if the source remains confidential
Directors and compliance teams	Need to preserve records and review possible violations
Regulatory authorities	Can investigate relevant information without automatically exposing its source

Companies should verify the truth of the complaint instead of finding the source of the complaint. A suspected informant should not be threatened or retaliated against. Such behavior can increase the company’s legal problems and reputational damage. 

Section 457 in 2026: Key Compliance Takeaways 

Section 457 is important in company investigations in 2026 as well. However, to be protected by this section, the information must have a specific connection to the Section 210 investigation. 

A few important things to keep in mind when faced with an investigation: 

• Preserve important emails, financial documents, contracts, and registers. 
• Do not destroy or alter any evidence. 
• Do not retaliate against a suspected whistleblower. 
• Review the company’s internal complaint reporting system. 
• Seek legal advice as necessary before responding to a notice or investigation from the authorities. 

These steps can help a company deal with the investigation responsibly. 

How Can Enterslice Help with Compliance? 

When an investigation by the MCA or Registrar of Companies is initiated against a company, it is important to prepare the correct documents and respond in a timely manner. Enterslice can provide annual compliance assistance to companies. We help businesses organize the necessary documents and identify potential compliance deficiencies. 

Our Services: 

• Notice Response: Assistance in preparing responses to MCA and ROC notices. 
• Document Review: Verification of company records and compliance deficiencies. 
• Investigation Support: Advice on preparing necessary documents and communicating with authorities. 
• Whistleblower Policy: Assistance in developing and improving internal complaint reporting mechanisms. 
• Compliance Advice: Guidance on improving corporate governance. 

Enterslice can be contacted if a company needs investigation or compliance assistance. 

Conclusion 

Section 457 of the Companies Act, 2013 helps to protect the identity of the source of information related to a specific investigation. However, this section does not protect all company documents or evidence. Its protection may apply only if the information is relevant to a Section 210 investigation. 

The company should verify the substance of the complaint, preserve the necessary documents, and maintain effective compliance mechanisms. Legal and compliance advice is also important to ensure you take the right steps during an investigation. Contact Enterslice for such assistance. 

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