Tuesday, June 28, 2016

CLB ends family feud by dismissing oppression plea filed by mother against her three daughters


a) The petitioner (mother) alleged acts of oppression and mismanagement in the a airs of the company by her 3 daughters.

b)  The relief was sought on various matters such as: - To declare the illegal board meetings

- Removal of director from the directorship of the Company - To declare all illegal transfers of shares

c)  Disposing the petition the HC directed to constitute an adhoc board with the mother and her three daughters for managing day-to-day a airs of the company and to carry out the statutory obligations under the Act.
 d)  On appeal against HC’s order, SC referred the parties for mediation advised them to work together and also directed CLB to dispose of the case on merits.

The Company Law Board held as under :

1) The petitioner has not made out any case of either oppression or mismanagement in the a airs of the Company. Further Petitioner has not come with clean hands and suppressed the vital information.

2) The allegations against company did not raise any oppression and mismanagement of a airs of the company - [2016] 70 taxmann.com 332 (CLB)

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