Section 245 of the Companies Act, 2013
Section 245 of the Companies Act, 2013 deals with the "Application to Tribunal for relief in cases of oppression, mismanagement, or for winding up on just and equitable grounds."
Here’s a detailed explanation:
Section 245 - Application to Tribunal for Relief
Who can apply?
Members of a company (holding not less than 10% of the issued share capital) or
Depositors or
Workmen or employees of the company,
may apply to the National Company Law Tribunal (NCLT) if they feel that:
The company’s affairs are being conducted in a manner oppressive to any member or prejudicial to the public interest or to any member, or
The company’s affairs are being conducted in a manner prejudicial to the interests of the company, or
The management of the company is being conducted in a manner that is oppressive or unfairly prejudicial to the interests of the members or prejudicial to the interests of the company or public interest.
Relief sought:
The Tribunal may pass such order as it thinks fit including:
Regulating the conduct of the company’s affairs in the future,
Providing for the purchase of the shares of any members by other members or by the company,
Removal of a director or managing director or manager,
Appointment of new directors or managers,
Winding up the company on just and equitable grounds.
Objective:
To protect members, employees, and other stakeholders against oppressive or prejudicial conduct or mismanagement by the company or its management.
Summary:
Section 245 is a remedy for minority shareholders or other stakeholders who suffer due to unfair, oppressive, or prejudicial conduct by the company or its controlling members.
It empowers them to approach the NCLT for appropriate relief, which can even include winding up the company on just and equitable grounds.
If you want, I can provide the exact leSection 245 of the Companies Act, 2013 deals with the "Application to Tribunal for relief in cases of oppression, mismanagement, or for winding up on just and equitable grounds."
Here’s a detailed explanation:
Section 245 - Application to Tribunal for Relief
Who can apply?
Members of a company (holding not less than 10% of the issued share capital) or
Depositors or
Workmen or employees of the company,
may apply to the National Company Law Tribunal (NCLT) if they feel that:
The company’s affairs are being conducted in a manner oppressive to any member or prejudicial to the public interest or to any member, or
The company’s affairs are being conducted in a manner prejudicial to the interests of the company, or
The management of the company is being conducted in a manner that is oppressive or unfairly prejudicial to the interests of the members or prejudicial to the interests of the company or public interest.
Relief sought:
The Tribunal may pass such order as it thinks fit including:
Regulating the conduct of the company’s affairs in the future,
Providing for the purchase of the shares of any members by other members or by the company,
Removal of a director or managing director or manager,
Appointment of new directors or managers,
Winding up the company on just and equitable grounds.
Objective:
To protect members, employees, and other stakeholders against oppressive or prejudicial conduct or mismanagement by the company or its management.
Summary:
Section 245 is a remedy for minority shareholders or other stakeholders who suffer due to unfair, oppressive, or prejudicial conduct by the company or its controlling members.
It empowers them to approach the NCLT for appropriate relief, which can even include winding up the company on just and equitable grounds.
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