Which of the following conduct, when carried on in a manner prejudicial to the interests of the company…
Under the provisions governing oppression and mismanagement in the Companies Act, 2013 (Sections 241–242), conduct carried on in a manner prejudicial to the company or its…
Choose your answer
Which of the following conduct, when carried on in a manner prejudicial to the interests of the company or its minority shareholders, may be held to be oppressive?
Answer and explanation
Correct answer D
Under the provisions governing oppression and mismanagement in the Companies Act, 2013 (Sections 241–242), conduct carried on in a manner prejudicial to the company or its members—such as exposing the company to undue risk, acting contrary to the Memorandum of Association, or denying basic principles of fairness in running the company—can be held to be oppressive. Therefore, all of the given options are correct.
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