NATIONAL COMPANY LAW BOARD RELIEF IN CASE OF OPPRESSION & MISMANAGEMENT

NATIONAL COMPANY LAW BOARD RELIEF IN CASE OF OPPRESSION & MISMANAGEMENT

Following are some of the cases decided by NCLT & Supreme Court in the application of Oppression and Mismanagement under section 241 of the Companies Act.

Failure to attend AGM/ EGM	If a member failed to attend AGM / EGM where notice of AGM was served properly , thus , member failed to avail an opportunity to vent his grievance, cannot be construed as oppression.
Sale of Shares to Outsiders in a private limited company	NCLT has no power to order sale of shares of a company to outsiders where oppression and mismanagement is alleged.
Supreme Court held that there was no FEMA violation when a foreign investor tries to repatriate his investment in Indian company and it cannot be regarded as oppression under section 241 of the Companies Act 2013.	Supreme Court considered the application as frivolous and levied a fine on the plaintiff.
Where the nominee directors do not vote in favour of the petitioner as managing director of joint venture company violating the provisions of the joint venture agreement that act is an acute act of oppression,	NCLT held that it is a fit case of oppression.
Having the attended the Board Meeting , a director cannot retract under the ground that minutes was not signed by him.	NCLT held that Minutes of the Board Meeting duly signed by the Chairman of the Board and attendance sheet signed by the Director are the evidence that Board Meeting held was valid one.
Petition for oppression was dismissed by NCLT	Where the petitioner fails to demonstrate that he holds requisite shareholding in the company
Petition by majority shareholders was admitted by NCLT	NCLT held that Blanket permission to raise loan relaxing requirement of special resolution as per section 180 of the Companies Act, 2013 is not acceptable.