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CMA Final · Corporate and Economic Laws · Prevention of Oppression and Mismanagement

Under the Companies Act, 2013, the Central Government may itself apply to the Tribunal for relief against oppression and mismanagement when, in its opinion, the affairs of a company are being conducted in a manner:

The Central Government can apply to the Tribunal on its own when it forms the opinion that the company's affairs are being conducted in a manner prejudicial to public interest. Individual member grievances are raised by the members themselves, not by the Government under this provision.

  1. APrejudicial to public interestCorrect
  2. BPrejudicial to the interests of a single minority member only
  3. CResulting in a delay in holding the annual general meeting
  4. DCausing a temporary fall in the company's share price

Explanation

Section 241(2) provides that if the Central Government is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the Tribunal. A grievance of one minority member is for that member to raise under section 241(1), subject to section 244.

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