Amended and updated notes on section 244 of the Companies Act 2013. Detail discussion on provisions and rules related to right to apply under section 241.
Chapter XVI (Sections 241–246) of the Companies Act, 2013 (CA 2013) deals with the provisions related to prevention of oppression and mismanagement. Section 244 of CA 2013 provides for right to apply under section 241.
Recently, we have discussed in detail section 243 (Consequence of termination or modification of certain agreements) of CA 2013. Today, we learn the provisions of section 244 of the CA 2013.
The provisions of section 244 are effective from 1st June, 2016. You may refer Notification No. S.O. 1934(E) issued dated 01.06.2016. In this article, you will learn detail of the provisions of section 244 of the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XVI |
| Chapter Name | Prevention of Oppression and Mismanagement |
| Section No. | 244 |
| Section Name | Right to apply under section 241 |
| Monthly Updated Edition | Company Law PDF |
Section 244 of Companies Act 2013: Right to apply under section 241
Section 244 shall come into force on 1st June, 2016 vide Notification No. S.O. 1934(E) issued dated 01.06.2016.
(1) The following members of a company shall have the right to apply under section 241, namely: —
- (a) in the case of a company having a share capital, not less than one hundred members of the company or not less than one-tenth of the total number of its members, whichever is less, or any member or members holding not less than one tenth of the issued share capital of the company, 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, not less than one-fifth of the total number of its members:
Provided that the Tribunal may, on an application made to it in this behalf, waive all or any of the requirements specified in clause (a) or clause (b) so as to enable the members to apply under section 241.
Explanation: For the purposes of this sub-section, where any share or shares are held by two or more persons jointly, they shall be counted only as one member.
(2) Where any members of a company are entitled to make an application under subsection (1), any one or more of them having obtained the consent in writing of the rest, may make the application on behalf and for the benefit of all of them.