Oppression and Mismanagement: Companies Act, 2013- FAQ’s
What is the purpose of Section 241 of the Companies Act, 2013?
Section 241 allows shareholders and debenture holders to seek legal help if they believe a company’s actions are unfair or harmful to their interests.
Who can file an application under Section 241?
Shareholders, debenture holders, or any group of them can file an application with the National Company Law Tribunal if they feel the company’s actions are unjust or harmful to them.
What remedies are available under Section 242?
The National Company Law Tribunal can order remedies like regulating the company’s affairs, buying shares, or compensating aggrieved parties if it finds merit in a complaint filed under Section 241.
Can minority shareholders seek redressal under the Companies Act, 2013?
Yes, minority shareholders can file complaints under Section 241 if they feel their interests are being ignored or if they’re facing unfair treatment within the company.
How are decisions made under the Companies Act, 2013 enforced?
Decisions made by the National Company Law Tribunal are binding and enforced with the help of government agencies like the Ministry of Corporate Affairs.
Oppression & Mismanagement : Meaning, Rights & Remedies
The Companies Act, 2013 is a law in India that regulates how companies function. It replaced an older law from 1956 and introduced several changes to improve corporate operations. This law covers various aspects of running a company, such as its formation, financial management, and the rights and responsibilities of shareholders and directors. It also establishes guidelines for activities like mergers, acquisitions, and corporate governance, to ensure transparency and accountability in business practices. The Companies Act, 2013 is significant because it helps create a fair and stable business environment, safeguarding the interests of investors and the public. It is enforced by government bodies like the Ministry of Corporate Affairs and the National Company Law Tribunal.
Geeky Takeaways:
- Companies Act, 2013, promotes transparency and accountability through stricter corporate governance norms.
- The Act empowers shareholders with enhanced rights, including approval for related-party transactions and minority shareholder protections.
- Companies face stricter regulatory oversight, with the Registrar of Companies and other authorities having more powers to investigate and penalize non-compliance.
- The Act mandates corporate social responsibility (CSR) activities for certain companies, emphasizing a commitment to community and environmental well-being.
Table of Content
- Section 241: Oppression and Mismanagement
- Right to Apply under Section 241 of Companies Act, 2013
- Remedies Available under Section 242 of Companies Act, 2013
- Landmark Ruling: Aruna Oswal vs. Pankaj Oswal & Others
- Conclusion
- Oppression and Mismanagement: Companies Act, 2013- FAQ’s