NCLT Rules on oppression and mismanagement suits amended

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The National Company Law Tribunal Rules, 2016 has been amended by the National Company Law Tribunal (Second Amendment) Rules, 2019.

Under the new framework, the minimum number of members required to file an application before the NCLT, alleging oppression or mismanagement of the affairs of a company under Section 245(1), has been amended to either:

(i) Atleast 5% of the total members or
(ii) 100 members of the company,
whichever is lower; or

(i) In the case of Unlisted Company: By member(s) holding not less than 5% of the issued share capital of the company;
(ii) In case of a listed Company: By member(s) holding not less than 2% of the issued share capital of the company.

This has been put forward in sub (3) of Rule 84 of The NCLT Rules, 2016.

In case the suit is preferred by depositors, the revised cap on the number of depositors required to file an application under section 245(1) is: Atleast 5% of the total number of depositors of the company, or 100 depositors, whichever is less; or depositor(s) who are owed 5% of the total deposits of the company.

The last amendment made, is removal of fee charged by NCLT for an application for compounding of offences from the schedule of fees

Click here to see amendment.

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