Companies Act Section 244 — Right to apply under section 241
CHAPTER XVI PREVENTION OF OPPRESSION AND MISMANAGEMENT
Commercial / Corporate
Summary
Sub-section (1) sets out which members of a company have the right to apply under section 241. For a company that has share capital, the right belongs to either at least one hundred members, or at least one-tenth of the total number of members, whichever is less, or to any member or members holding at least one-tenth of the issued share capital, provided that the applicant or applicants have paid all calls and other sums due on their shares. For a company that does not have share capital, the right belongs to at least one-fifth of the total number of its members.
The proviso to sub-section (1) states that the Tribunal may, if an application is made to it for this purpose, 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.
The explanation to sub-section (1) clarifies that, for the purposes of this sub-section, where any share or shares are held by two or more persons jointly, they are counted only as one member.
Sub-section (2) states that where any members of a company are entitled to make an application under sub-section (1), any one or more of them, having obtained the written consent of the rest, may make the application on behalf and for the benefit of all of them.
Official Text
(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 sub-section (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.