The issued, subscribed and paid up capital of Trustwell HR Solutions Ltd. is ₹5 lakh consisting of 45,000 equity shares of ₹10 each fully paid up and 5,000 preference shares of ₹10 each fully paid up. Out of members of t

CS Executive · Company Law · PYQS · December 2018
The issued, subscribed and paid up capital of Trustwell HR Solutions Ltd. is ₹5 lakh consisting of 45,000 equity shares of ₹10 each fully paid up and 5,000 preference shares of ₹10 each fully paid up. Out of members of the company, 400 members holding one preference share each and 50 members holding 500 equity shares applied for relief from oppression and mismanagement under the Companies Act, 2013. The company had 300 equity shareholders and 2,500 preference shareholders as per information obtained from its register of members. State if the above petition is maintainable under the Companies Act, 2013.

Answer & Explanation:

As per section 244 (1) of the Companies Act, 2013, in the case of a company having a share capital, members eligible to apply for oppression and mismanagement shall be lowest of the following: 100 members; or 1/10th of the total number of members; or Members (including equity shareholder as well as preference shareholder) holding not less than 1/10th of the issued share capital of the company. The application alleging oppression and mismanagement has been made by the members as follows: Number of members making the application: Preference shareholders 400 Equity shareholders 50 Total members 450 As it is evident, the application made by 450 members meets the eligibility criteria specified u/s 244. Therefore, the application is maintainable.

Topics: Prevention of Oppression and Mismanagement

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