National Company Law Tribunal (Second Amendment) Rules, 2019

National Company Law Tribunal (Second Amendment) Rules, 2019

blog

May 15

2019

Posted by: CS Shilpi Thapar

MCA vide notification no F. No. 1/30/2013 CL.V dated 8th May,2019 has specified the requisite number of members or depositors for applying under section 245 by amending National Company Law Tribunal Rules,2016 with National Company Law Tribunal( Second Amendment) Rules, 2019(hereinafter referred to as “Rules”). The copy of said notification can be downloaded from www.mca.gov.in.

Date of Enforcement of Rules: The Rules shall come into force on the date of their publication in the Official Gazette.

  • Section 245 of Companies Act, 2013 contains provisions related to Class Action Suits.
  • However, earlier the Companies Act, 2013 was silent regarding criteria for making application to the Tribunal for Class Action Suits.
  • This Rules specifies the criteria for making an application to the National Company Law Tribunal under Section 245(1) of the Companies Act, 2013 dealing with class action.
  • By inserting sub rule 3 and 4 to Rule 84 of National Company Law Tribunal Rules, 2016, the following amendment has been made:

“(3) In case of a company having a share capital, the requisite number of member or members to file an application under sub-section (1) of section 245 shall be –

(i) (a) at least five per cent of the total number of members of the company; or

     (b) one hundred members of the company,

  Whichever is less; or

(ii) (a) member or members holding not less than five per cent of the issued share capital of the company, in case of an unlisted company;

      (b) member or members holding not less than two per cent of the issued share capital of the company,

In case of a listed Company:

(4) The requisite number of depositor or depositors to file an application under sub-section (1) of section 245 shall be –

(i) (a) at least five per cent of the total number of depositors of the company; or

                   (b) one hundred depositors of the company,

Whichever is less; or;

(ii) Depositor or depositors to whom the company owes five per cent. of total deposits of the company.

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