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2008 (4) TMI 505 - HC - Companies LawOppression and mismanagement - whether appellant did not qualify to file the said petition in terms of section 399 of the Act as the appellant held less than 1/10 of the "issued share capital"? Held that:- Whatever angle one looks at the expression ‘issued share capital’ of the Company it is very clear that the expression ‘issued share capital’ can only refer to the preference share capital as well as equity share capital of the Company and the appellant was required to hold one-tenth of the total of this issued share capital before he became eligible to maintain a petition under section 397/398 of the Act. The appellant at no time held more than 2.01 per cent of issued share capital. It did not have it when it became a member or shareholder. It did not have the requisite percentage on the date of filing of the petition. The appellant might be having 14.8 per cent of equity shares, but that is not the criterion to make an application. The petition was therefore rightly dismissed.
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