Section 87 of the Companies Act, 2013
Section 87 of the Companies Act, 2013 deals with the rectification of register of members in certain cases by the Tribunal (NCLT).
📘 Section 87 – Rectification of Register of Members
This section allows a person to approach the National Company Law Tribunal (NCLT) if there is any dispute or error regarding entries in the company’s register of members.
⚖️ Key Provisions:
(1) Application for Rectification:
If:
Name is entered in the register without sufficient cause, or
Name is omitted from the register wrongfully, or
Any default or unnecessary delay occurs in entering or removing the name,
➡️ The person aggrieved, or the company, or a member of the company may apply to the Tribunal (NCLT) for rectification.
(2) Tribunal's Powers:
The Tribunal can:
Direct rectification of the register.
Order the company to pay damages if someone has suffered loss due to the wrongful act.
Decide any dispute about title to the shares.
🔁 Important Points:
This section is especially used in cases of forgery, fraud, wrongful allotment, or transfer of shares.
It acts as a remedy for investors/shareholders when they are unjustly deprived of their rights.
📝 Example:
If Mr. X finds that his name was removed from the register of shareholders without any reason, or if someone else’s name has been added fraudulently, he can apply to the NCLT under Section 87 for correction.
Let me know if you want:
A sample application format to NCLT under this section,
Case law references, or
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