Section 241 & 244 Of Companies Act 2013
Updated: Jun 23
Thus the complaint regarding oppression can be made on the ground of public interest and interest of the company. Further, complaint before the Tribunal can also be made where the interest of creditors or debenture holders or class of share holders is adversely appealed by virtue of alteration in Board in Directors or in ownership in the company's shares.
Section 241: Application to Tribunal for Relief in Cases of Oppression, etc.
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 member or members or in a manner prejudicial to the interests of the company; or
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, it is likely that the affairs of the company will be conducted in a manner prejudicial to its interest or its members or any class of members, may apply to the Tribunal provided such member has a right to apply under section 244, for an order under this chapter.
Section 244: Right to apply to the Tribunal
In the case of a company having a share capital, not less than one hundred members of the company or not less than one tenth of the total number of its members, which over is less on any member or members holding not less than one tenth of issued share capital of the company:
Provided that the applicant or applicants has or have paid all calls and after sums due on his or their shares.
Consent in writing to be given by the members for the purpose of filling complaint before the Tribunal.