MNO Ltd. is a listed company. A group of minority shareholders alleges that the company's Board of Directors has engaged in fraudulent transactions, misappropriated company funds, and manipulated financial statements to

A class action suit is a lawsuit where a group of people representing a common interest may approach the Tribunal to sue or be sued. It is a procedural instrument that enables one or more plaintiffs to file and prosecute litigation on behalf of a larger group or class having common rights and grievances. The requisite number of members provided in sub-section (1) of Section 245, shall be as under: A. In case, application by Members: (a) In the case of a company having a share capital - not less than one hundred members of the company, or not less than such percentage of the total number of its members as may be prescribed, Whichever is less; or any member or members holding not less than such percentage of the issued share capital of the company as may be prescribed, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares; B. In the case of a company not having a share capital - (i) not less than one-fifth of the total number of its members. As per Rule 84 of the National Company Law Tribunal Rules, 2016, in case of a company having a share capital, the requisite prescribed number of member or members to file an application shall be: (a) At least 5% of total number of members of the company or (b) 100 members of the company, whichever is less, or (i) (a) member or members holding not less than 5% of the issued share capital of the company in case of an unlisted company, or (b) member or members holding not less than 2% of the issued share capital of the company in case of a listed company. MNO Ltd. is a listed company. A class suit action is moved by such number of shareholders holding 3% of issued share capital which is more than the required shareholding of 2%. Hence, the class suit action is admissible.