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    Oppression and Mismananhemenrt

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    Ram Shankar Tiwari

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    Oppression and Mismananhemenrt

    Uploaded by

    Ram Shankar Tiwari
    13 views9 pages

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    Copyright:

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    Download as pdf
    13 views9 pages

    Oppression and Mismananhemenrt

    Uploaded by

    Ram Shankar Tiwari

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 9
    2 ee Any suet IEICE oe eOleer can, on Principle, defy the ma: 1 cd, aS fringed, i , HOrity, right to Vote, right te have One's voy "corded a s include oe a company at an election, ete, f irector sa dire anagement d Mism jon an ies Act whiel ou. le mies Act which Provid » Compa s of the for pre ismanagement are also an ¢ mana nd mis| ‘VERKiOn of XCCPtiON Lo the tule in Fogg ESSION ENTION OF OpPRESS} ao, MISMANAGEMUN 12 i ial provisions for i ontains special Pi ns eee i +h provisions i he Comp aim of such p cee? ee ih ang pelameandgemiet ace and also to protect peers of oppression 2 of investors in ee by thess provisos pr rd the interc nferred on share $ afegua: The rights confe 1 r¢ the publie intere The inority rights. rest. iB rity rigl . ; the public inte: s “qualified minority v only permitted redicat of Sere, issony, remedy es 2a d a deterrent effect upon This ingenious sae availability has ha jt its mi + ‘ buses, bui many a F | ic majority calls for | ismanagement of companies by q sion or misma | The oppressio! | | | | | hat reliefs Sec, 398? Wi ion be made under Sec, 397 nd Bee, S06. in eum ication nan applica! plication? Bee eee cach ap) can be gral ~~ os Ct, 1956 pane 320 Company Law ment, Sections 397 and 398 ofthe Compan ras remedy: 20> Sections 241 and 242 oth at provide for such eich y be noted that the compatty cannot by isl « elef under this jurisdiction [Ultrfilter (Indi) (7 Peng ) (2002) 112 Comp Cas 93 (CLB)]. id.y for an) " GmbH ity, i (A) prevention of Oppression (Sec. 241) ‘The first remedy e “on 241(1) of the 2013 Act provides that any m Tribunal. Sect ) ; & acompany who complains that the company’s affairs are beingesnte jn a manner prejudicial to the public interest or in a manner . to bim or any member or members or in a manner prejy ie ie jnteress of the company, ™4Y apply to the Tribunal for approprin, [Clause (2) rg inledy, any member ofa company who complains tht thm uo no bing» han brought about by, or in the imac creditors, inchuding debenture holders or any class of sharcholdersoj company, has taken place in the management or control of the comer “chether by an alveration in the Board of Directors, or manager, or a vmership of the company’s shares) OF if it has no share capita, in membership, or in any other manner whatsoever, and that by reasoa of such change, itis ely that che affairs of the company will be conduce! in 2 manner prejudicial to jts interests or its members or any class of 2a bers, may apply tothe Tribunal, provided such member ha rile to apply under Sec. 244, for an order under this Chapter [Clause (6), The Central Government, if it is of the opinion that the affairsof the company are being conducted in manner prejudicial to public imterea, it may itself apply to the Tribunal for an order under this Chapter [Sec.241(2)]. Thus, the Central Government also has the power to apply for relief under the section. “The requisite number of members who must sign the application {Sec. 241(1)] is given in Sec. 244. Where the company is with a shure capital, the application must be signed by at least 100 members of tht company or by onetenth ofthe total number of its members, whichever is les, or by any member or members holding one-tenth of the i share capital of the company; in the case of a company "0! having ¢ share capital, not less than one-fifth of the total number of its members in the hands of an oppressed minority is to Move potion ot Ainorty agalnst Oppronston, ato, S2h 10 pigeon (0 Seo, MCL) lave down that joint holders of 2H ered 8 oe WH at ge 0" ¢ ‘ye uF sa at th “Pyvanal nay, onan appetion made to Hein is any oe ean pe in ah (2) x tet 0a se Sy th ‘ilu has i power 10 permit a lesser number af members to pra wal ne y re eetionaty cis ae section r pe cnc of he es i ap ye made ty one or more of them on behalf of and for the benefit cb od them ec, 242) df ‘phere cannot tbe a blanket consent, The signatories mut be told of pei ets costing a es, Tn «pin vs rejected “Peet beens the consenting members were tok hat dele guatres

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