5a

REFER TO PPT SHARED BY MAAM TITLED MAJORITY RULE AND MINORITY

INTEREST.

Rights available under Chapter XVI, COMPANIES ACT 2013. These rights safeguard the
interest of investors and public by offering judicial and administrative remedies for prevention
of oppression and mismanagement.

Section 241- individual remedy available to a member of company and central government, can
explain a little by mentioning grounds under Section 241.

[Can also explain in brief the provisions in 242, 243 and 244]

Some cases mentioned in ppt but I am not sure if they are useful for the answer. Toh wo dekh lena.

Section 245- Class action- available to members as well as depositors.

Yes, the applicants/petitioners under qualified minority rights can file a class action suit under
Section 245,

Explain the various provisions under Sec 245.

2 important provisions- Section 241 and Section 245- different rights and remedies

• Sec 241 limits its protection to the shareholders of a company, sec 245 includes
depositors also.

• The scope of remedies available under Section 241 is much wider than sec 245 (such as
order for purchase of shares by any member, restrictions on transfer or allotment,
termination or modification of an agreement, removal or appointment of director etc.)

• Section 245 grants better award for damages and compensation to the applicants.

• Any order made under Section 245 is in nature of rem and is binding even on those
members or depositors who are not party to the application as opposed to an order of
oppression and mismanagement which is only binding on the parties to the application.
 • While a Class Action can be invoked in case of any act prejudicial to the interest of the
members, the depositors or the company; in case of oppression and management, public
interest is also taken into account.

Application u/s 241/ 244 Application u/s 245

Who can apply? Members of the Co Members & Depositors

Central Government

gainst Whom? Company & its management (MD, Company, Directors, Auditors, Expert
manager or any of the directors) Advisors, Consultants or any oth
person

ublic Notice Not Required Required

atters for which relief may be requested
Oppression, Mismanagement, prejudicial
to any member/s or interest of the Co or
prejudicial to public interest, both past &
continuing
Acts involving violation of law, ult
vires the articles or Memo.
Fraudulent, unlawful or wrongful act
omission or improper or misleadin
statements.

Covers past, present, future activities.