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2011 (6) TMI 674 - Board - Companies LawWhether CLB can shut its eyes to the flagrant violation of the provisions of section 17 – Alteration of MOA – amendment of the object clause of a mainly cement manufacturing and trading company to deal in securities, instruments By group of shareholders controling 62.9 per cent voting rights, without information to other members - alleged that aforesaid is fraudulent scheme, a mischievous device conceived to defraud the company, its stakeholders and the public to make illicit gains - Held that:- CLB, a quasi judicial authority guided by the principles of natural justice may in exercise of its power and discretion grant leave to amend the pleadings provided the party approaching was not acting mala fide - mismanagement in the affairs of the company causing oppression to the minority shareholders, seeking amendment of the object clause of memorandum of association of the company for doing the business already being done, keeping the shareholders in the dark - such an act is sought to be got ratified now by seeking amendment to the object clause of the memorandum, an enquiry into the charges is very much within the scope of interim injunction in the instant matter
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