Section 304 of the Companies Act, 2013
Section 304 of the Companies Act, 2013 pertains to the Power of Tribunal to Provide for Relief in Cases of Oppression or Mismanagement.
📜 Section 304 – Power of Tribunal to Provide Relief
🔹 Overview:
When the National Company Law Tribunal (NCLT) is satisfied that the affairs of a company are being conducted in a manner that is:
Oppressive to any member or members, or
Prejudicial to the interests of the company or its members,
it may make such orders as it thinks fit to bring an end to the matters causing oppression or mismanagement.
🔹 Types of Relief Tribunal Can Provide:
Regulation of the company’s affairs in the future,
Purchase of shares of any members by other members or by the company,
Appointment or removal of directors or other officers,
Setting aside decisions or actions,
Any other order to protect interests of the members or company.
✅ Key Points:
| Aspect | Details |
|---|---|
| Authority | National Company Law Tribunal (NCLT) |
| Grounds | Oppression or mismanagement in the company |
| Relief | Wide discretion to make appropriate orders |
| Objective | Protect members and company from unfair conduct |
⚖️ Context:
Applies when minority shareholders face oppression by majority,
Or when company affairs are mismanaged affecting stakeholders.
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