(1) The following members of a company shall have the right to apply under section 397 or 398:-1. Subs. by Act 31 of 1988, sec. 67, for "Court" (w.e.f. 31-5-1991) and again subs. by Act 11 of 2003, sec. 44, for "Company Law Board".
(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 members or members holding not less than one-tenth of the issued share capital of the company, provided that the applicant or applicants have paid all calls and other sums due on their shares;(2) For the purposes of sub-section (1), where any share or shares are held by two or more persons jointly, they shall be counted only as one member.
(b) in the case of a company not having a share capital, not less than one-fifth of the total number of its members.
(3) Where any members of a company are entitled to make an application in virtue of 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.
(4) The Central Government may, if in its opinion circumstances exist which make it just and equitable so to do, authorise any member or members of the company to apply to the 1[Tribunal] under section 397 or 398, notwithstanding that the requirements of clause (a) or clause (b), as the case may be, of sub-section (1) are not fulfilled.
(5) The Central Government may, before authorising any member or members as aforesaid, require such member or members to give security for such amount as the Central Government may deem reasonable, for the payment of any costs which the 1[Tribunal] dealing with the application may order such member or members to pay to any other person or persons who are parties to the application.
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