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

Under the provisions on prevention of oppression and mismanagement, which of the following persons may apply to the Tribunal under section 241(1) on the ground that the company's affairs are being conducted in a manner oppressive to a member, provided the person has a right to apply under section 244?

A member of the company may apply to the Tribunal under section 241(1) when the affairs are conducted oppressively or prejudicially, provided that member has the right to apply under section 244. Creditors, auditors and employees are not given this right as such by that sub-section.

  1. AAny member of the companyCorrect
  2. BAny creditor of the company
  3. CThe statutory auditor of the company
  4. DAny employee of the company

Explanation

Section 241(1) begins with 'Any member of a company who complains' and allows such a member to apply, provided the member has a right to apply under section 244. Creditors, auditors and employees are not named as applicants under this sub-section merely by virtue of that status.

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