To safeguard the interest of the shareholders through class action suits, an application may be made to…
Under Section 245 of the Companies Act, 2013 members may apply "to restrain the company from committing an act which is ultra vires the Articles or Memorandum", "to restrain…
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To safeguard the interest of the shareholders through class action suits, an application may be made to the Tribunal. Which one of the following is wrong? An application
Answer and explanation
Correct answer C
Under Section 245 of the Companies Act, 2013 members may apply "to restrain the company from committing an act which is ultra vires the Articles or Memorandum", "to restrain the company from committing breach of any provision of the Company's Memorandum and Articles" and "to restrain the Company and its Directors from acting on a resolution obtained by mis-statement to the members or depositors"; an application "to restrain the Company from taking action in accordance with any resolution passed by members" is not a permitted ground and is therefore the wrong statement. Section 245(1)(f) only allows members to restrain the company from taking action contrary to a resolution passed by the members.
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