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Mention the provisions of the Companies Act regarding protection against injustice or exploitation and mismanagement in a company.

Mention the provisions of the Companies Act regarding protection against injustice or exploitation and mismanagement in a company.

The business and management of the company is based on the members of the company and the views of the members are determined by their majority or majority or whatever plan the majority of the members of a company would like, can be implemented on the company, if it is their rights. Don’t be outside But due to this many times minority members may suffer due to injustice and mismanagement. Therefore, there is a provision in the Companies Act that if the minority members are exposed to injustice or mismanagement in the company, which is likely to harm them or the interests of the company, then they can apply for this protection to the Central Government or the court.

Injustice means to unduly suppress or act against the public interest or to obstruct someone’s rights by depriving him of judicial rights, whereas mismanagement refers to the presence when the conduct of the company is in the interest of the company itself. or change in ownership of shares and change in management and control is not done properly has gone.

According to judicial decisions, the following types of actions that happen to a member have been included in the category of injustice: 1. Acts depriving a member of his fundamental rights.

2. Works neglecting the basic principles of operation. 3. Acts prejudicial to the interests of the members.

4. Works neglecting public policy and social responsibility.

5. Acts that do injustice to minority shareholders, increase liability and risk.

6. Compliance of the Companies Act, Councilor’s Memorandum and Councilor’s Articles by the Board of Directors

and acts neglecting and neglecting 7. To treat any member cruelly and unjustly. 8. Any other act which the Central Government and the Tribunal may consider to be unjust.

Mismanagement refers to the neglect, indifference, negligence and selfishness on the part of the managers and operators in the affairs of the company, resulting in continuous damage to the company and serious damage to the interests of the company. This is against public policy.

Application for Prevention of Oppression and Mismanagement For the rights related to the prevention of injustice and mismanagement of minority members of the company, it is necessary that the application should be submitted before the Tribunal. The forward persons can apply to the Tribunal for assistance against injustice and mismanagement

1. Application by members – Injustice and mismanagement happening in the company’s members company

You can make a complaint to the Tribunal and apply for its redressal. In this regard (1) not less than 100 members of the company or members equal to one-tenth of the total members,


The main provisions are as follows (a) in the case of a share capital company


whichever is less, may apply; Or


(ii) such members having rights over one-tenth of the issued capital of the company who have


have paid all the dues on his shares, can apply. (b) If there is no share capital in the company, then an application can be made to the company legislature by the members equal to at least one-fifth of the total number of members of the company.


It may be mentioned that the Central Government may relax the provisions of (a) and (b) above regarding the minimum number of members, if it deems fit. On giving such exemption, any member or other prescribed number of members can complain to the Tribunal about the injustice and mismanagement happening in the company.

2. Application by the Central Government The Central Government may, if it thinks fit, itself make an application to the Tribunal for the prevention of injustice and mismanagement in any company. 3. If the Central Government authorizes any person to make an application to the Tribunal to prevent injustice and mismanagement happening in any company, then that person can also apply.

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