Section 241 Application to Tribunal for relief in cases of oppression
- Amendments
- 2
- Last changed
- 15 August 2019
241. Application to Tribunal for relief in cases of oppression, etc.—
(1) Any memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of a company who complains that—
(a) the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial or oppressive to him or any other memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. or members or in a manner prejudicial to the interests of the company; or
(b) the material change, not being a change brought about by, or in the interests of, any creditors, including debenture holders or any class of shareholders of the company, has taken place in the management or control of the company, whether by an alteration in the Board of Directors, or manager, or in the ownership of the company’s shares, or if it has no share capital, in its membership, or in any other manner whatsoever, and that by reason of such change, it is likely that the affairs of the company will be conducted in a manner prejudicial to its interests or its members or any class of members,
may apply to the Tribunal, provided such memberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. has a right to apply under section 244, for an order under this Chapter.
(2) The Central Government, if it is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the Tribunal for an order under this Chapter.
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019Provided that the applicants under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench.
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(3) Where in the opinion of the Central Government there exist circumstances suggesting that—
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust;
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principle or prudent commercial practices;
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(c) a company is or has been conducted and managed by such person in a manner which likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(d) the business of a company is or has been conducted and managed by such person with intent to default its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest,
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019the Central Government may intiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the officer of director or any other office connected with the conduct and management of any company.
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be jointed as a respondent to the application.
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(5) Every application under sub-section (3)—
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessary for the purpose of the inquiry; and
Inserted by Companies (Amendment) Act, 2019, s. 33, with effect from 15 August 2019(b) shall be signed and verified in the manner laid down in the Code of Civil Procedure (5 of 1908), for the signature and verification of a plaint in a suit by the Central Government.