Oppression and Mismanagement

Question 1

What is the eligibility for members to file application for oppression and mismanagement with Tribunal for company having SC?

Answer 1

LOWEST of :
100 members
1/10 of total members
1/10th of total issued SC ( pref + equity)

provided all calls / sums due on shares have been paid

Question 2

What is the eligibility for members to file application for oppression and mismanagement with Tribunal for company NOT having SC?

Answer 2

Atleast 1/5th of tot no. of members

Question 3

Under what conditions is the petition maintainable incase minimum no. of petitioners or petitioner’s shareholding is reduced?

Answer 3

1. If the shareholding of petitioner reduces due to fresh issue / allotment which is oppressive
2. If the petitioner withdrew consent during course of proceedings

Question 4

How can the eligibility for members to file application for oppression and mismanagement be relaxed

Answer 4

Tribunal can waive of minimum requirements on an application made to him

Question 5

Any two cases which do not amount for oppression and mismanagement

Answer 5

1. continuous losses cannot, by itself, be regarded as oppression
2. failure to declare dividends or payment of low dividends

Question 6

Min. requirement for class action suit

Answer 6

Required no. of min members:
LOWER of 100 or 5% of total no. of members

OR
Req.min shareholding
unlisted - 5% of issued SC
Listed - 2% of issued SC

Incase of Co. without SC - Atleast 1/5 of tot no of members

Min. reqd. depositors :
LOWER of 100 or 1/5th of tot no. of depositors