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Without a Tribunal waiver, what fraction of the members of a company with no share capital is needed to apply under Sections 241 and 244 of the Companies Act, 2013?

Question and options

Without a Tribunal waiver, what fraction of the members of a company with no share capital is needed to apply under Sections 241 and 244 of the Companies Act, 2013?
  1. One-fifth

  2. One-tenth

  3. One-fiftieth

  4. One-twentieth

Answer and explanation

Correct answer: A - One-fifth

Section 244(1)(b) of the Companies Act, 2013 requires an application under section 241 by a company without share capital to be made by not less than one-fifth of its total members. One-tenth is the figure for a company having a share capital under section 244(1)(a), where one hundred members also suffice. The proviso to section 244(1) lets the Tribunal waive these requirements.

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