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2015 (12) TMI 1694 - Board - Companies LawOppression and mismanagement - maintainability of petition - proof of demurer application - consenting shareholders - Held that:- The number of shareholders have been attempted to be increased by opening new folios in the register of members though the shareholders are limited. In fact, the spirit of section 399 concentrates on one-tenth of the ownership either in terms of the percentage of shareholding or in terms of number of shareholders of the company and hence, for this purpose, the real ownership of the company needs to be kept in mind in terms of section 247 of the Companies Act, 1956. On this logic, the contention of having 34 members in the company based on different folios only does not carry legal support and substance. In fact, even the same individual has been counted twice or thrice and hence, on this count itself, it of the considered opinion that the number of members are actually less than 30. In view of this, the petitioners along with consenting shareholders being 3 in number constitute more than 10 per cent of the total number of members and thereby, the company petition is maintainable in terms of section 399(1) of the Companies Act, 1956. As such, the prayer made in the instant company application to dismiss the company petition on the ground of maintainability is hereby disallowed.
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