Section 244: Right to apply under section 241
This section determines which members of a company have the right to apply under section 241.
The section, clause by clause
What the section says
In plain terms
(1)The following members of a company shall have the right to apply under section 241, namely:—
Members of a company with a share capital can apply under section 241 if they are at least 100 members or one-tenth of the total members, whichever is less, or if they hold at least one-tenth of the issued share capital, and members of a company without a share capital can apply if they are at least one-fifth of the total members.
(1)(a)in the case of a company having a share capital, not less than one hundred members of the company or not less than one-tenth of the total number of its members, whichever is less, or any member or members holding not less than one-tenth of the issued share capital of the company, subject to the condition that the applicant or applicants has or have paid all calls and other sums due on his or their shares;
(1)(b)in the case of a company not having a share capital, not less than one-fifth of the total number of its members:
provisoProvided that the Tribunal may, on an application made to it in this behalf, waive all or any of the requirements specified in clause (a) or clause (b) so as to enable the members to apply under section 241.
explanationExplanation.—For the purposes of this sub-section, where any share or shares are held by two or more persons jointly, they shall be counted only as one member.
(2)Where any members of a company are entitled to make an application under sub-section (1), any one or more of them having obtained the consent in writing of the rest, may make the application on behalf and for the benefit of all of them.
If multiple members are entitled to make an application, one or more of them can make the application on behalf of all of them if they have the written consent of the rest.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 43 (w.e.f. 21-12-2020).
- 2. Subs. by s. 43, ibid., for “one lakh rupees, or with both” (w.e.f. 21-12-2020).
- 3. Ins. by Act 22 of 2019, s. 35 (w.e.f. 15-8-2019).
- 4. Ins. by Act 22 of 2019, s. 35 (w.e.f. 15-8-2019).
- 5. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 44 (w.e.f. 21-12-2020).
- 6. Subs. by s. 44, ibid., for “five lakh rupees, or with both” (w.e.f. 21-12-2020).
This section refers to
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.