Section 244 of the Companies Act, 2013
Section 244 of the Companies Act, 2013 specifies the right of members to apply to the Tribunal under Section 241 for relief in cases of oppression and mismanagement in a company.
🔹 Section 244 – Right to Apply under Section 241
🟡 Who Can Apply?
The following members of a company have the right to apply to the National Company Law Tribunal (NCLT) under Section 241 (for oppression and mismanagement):
🔸 In case of a company having share capital:
The application can be made by:
At least 100 members, or
Not less than 1/10th of the total number of members, whichever is less, or
Any member(s) holding not less than 1/10th of the issued share capital, provided all dues on shares are paid.
🔸 In case of a company not having share capital:
Not less than 1/5th of the total number of its members.
🟨 Waiver Provision – Section 244(1)(b):
The Tribunal may waive the above minimum requirement on an application, allowing members to file under Section 241 even if they don’t meet the threshold.
✅ Objective:
To protect minority shareholders from acts of oppression or mismanagement by allowing them to approach the Tribunal for relief under Section 241, subject to certain eligibility criteria.
🔗 Related Section:
Section 241: Provides for application to the Tribunal when the affairs of the company are being conducted in a manner oppressive to any member(s) or prejudicial to public interest or company’s interest.
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