Question

    Under Section 397 of the Companies Act, 1956, any member

    can approach Company Law Board for relief against:
    A Oppression of minority shareholders or mismanagement of company affairs Correct Answer Incorrect Answer
    B Non-payment of dividends Correct Answer Incorrect Answer
    C Director disqualification Correct Answer Incorrect Answer
    D Share transfer refusal Correct Answer Incorrect Answer
    E Auditor negligence Correct Answer Incorrect Answer

    Solution

    Section 397 of the Companies Act, 1956 provides statutory remedy where company affairs conducted oppressively towards minority or prejudicial mismanagement exists. CLB exercises equitable jurisdiction, ordering share purchase, dividend payments, management changes, or winding up as just and equitable remedy.

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