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Disputes between shareholders, directors and partners can paralyse a business. Company law provides specific remedies, mostly before the National Company Law Tribunal (NCLT).
Last reviewed: October 2026 · General information only, not legal advice.
A member can petition the NCLT if the company's affairs are being conducted in a manner prejudicial or oppressive to any member or to the public interest, or if there has been a material change in management or control that is prejudicial Companies Act 241.
Who can file 244: in a company with share capital, at least 100 members or one-tenth of the members, whichever is less, or members holding one-tenth of the issued share capital. The NCLT can waive this requirement in suitable cases.
Typical examples: illegal allotment of shares to dilute a shareholder, removal of a director without due process, siphoning of funds, denial of information and dividends, and decisions taken without proper meetings.
| Issue | Remedy | Provision |
|---|---|---|
| Name wrongly entered or omitted in register of members | Rectification by NCLT | Companies Act 59 |
| Wrongful acts affecting a group of shareholders or depositors | Class action | Companies Act 245 |
| Fraud in the company's affairs | Investigation into affairs | Companies Act 213 |
| Director's liability for company cheques | Defence based on role | NI Act 141 |
| Disputes between partners | Civil suit, arbitration, dissolution and accounts | Partnership Act, LLP Act |
| Commercial contract disputes | Commercial suit or arbitration | Commercial Courts Act |
Under Section 244 of the Companies Act, 2013, in a company with share capital, at least 100 members or one-tenth of the total members, whichever is less, or members holding at least one-tenth of the issued share capital. The NCLT may waive these requirements in appropriate cases.
Yes. An allotment made to reduce a shareholder's stake without a genuine business need, or without following proper procedure, can be challenged before the NCLT as oppression and mismanagement.
Yes. In an oppression and mismanagement case, the NCLT can order the removal of a director or managing director under Section 242 of the Companies Act if it finds that this is necessary.
Every case turns on its own facts. Speak to Advocate Ajay Mishra for advice specific to your situation — in person at IP Extension (Delhi) or Vaishali (Ghaziabad), by phone, or by video call.