Under Section 241 read with Section 242 of the Companies Act, 2013, th…

Question

Under Section 241 read with Section 242 of the Companies Act, 2013, the NCLT may pass orders in cases of **oppression and mismanagement**. Which of the following is among the orders expressly mentioned in Section 242(2)?

Accepted Answer

D. {'text': 'Order for purchase of shares or interests of any members of the company by other members thereof or by the company', 'label': 'D'}

1. Section 242 of the Companies Act, 2013, provides the menu of orders the NCLT may pass on petitions under Section 241 alleging oppression/mismanagement.
2. Section 242(2)(b), reproduced in Lesson 12, expressly empowers the NCLT to make an "**order for purchase of shares or interests** of any members of the company by other members thereof or by the company".
3. Other listed orders include: regulation of future affairs, reduction of share capital, termination of agreements with the MD/director, removal of MD/director, recovery of undue gains, etc.
4. The other options describe powers not in Section 242(2).
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 12 (Special Courts, Tribunal under Companies Act and other Legislations), pp. 273-283._

Answer

{'text': 'Order for the immediate cancellation of the certificate of incorporation of the company by the Registrar of Companies under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'A'}

Answer

{'text': 'Order for the criminal prosecution of all the members of the company under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'B'}

Answer

{'text': 'Order for the suspension of all banking operations of the company under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'C'}