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Consider the following statements in respect of the powers of the Tribunal under the Companies Act,…

All three describe powers available to the Tribunal under section 242. It can make an order to end the matters complained of, remove a managing director, and provide for a…

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Consider the following statements in respect of the powers of the Tribunal under the Companies Act, 2013 regarding an application for relief in cases of oppression :
1. If the Tribunal is of the opinion that a company's affairs have been conducted in a manner oppressive to any member, it may make such orders as it thinks fit
2. The tribunal may make an order of removal of the managing director of a company
3. The tribunal may make an order regarding purchase of shares of any member by other members of the company
Which of the statements given above is/are correct ?

Select one answer
Answer and explanation

Correct answer D

All three describe powers available to the Tribunal under section 242. It can make an order to end the matters complained of, remove a managing director, and provide for a member's shares to be bought by other members. These powers operate on the statutory findings: oppressive or prejudicial conduct, and that winding up would unfairly prejudice members although the facts otherwise justify winding up on just and equitable grounds.

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