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Powers of the Central Government

The Central Government also has some powers to prevent injustice or mismanagement happening in any company. The main provisions in this regard are as follows

(1) Cases of exercise of powers- The Central Government may exercise its powers only when the Tribunal by order in writing directs the Central Government to do so. The Tribunal orders the Central Government to exercise its powers in a company only when

(i) the Central Government has referred any case of injustice to it or (ii) at least 100 members of the company have made an application in this behalf; or (iii) the members having the right to 1/10th of the total voting power have applied for this.

(2) Appointment of directors – In order to effectively protect the interests of the company, public or shareholders, the Central Government may, by order of the Tribunal, appoint directors in any company. The company can appoint as many directors as is mentioned in the order of appointment of directors.

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