COMPANY LAW May (2026) COMPANY LAW UPDATES AND JUDGMENTS

The Supreme Court dismissed the appeals and upheld the orders of the High Court and the Company Law Board. The principal question was whether respondent no. 1 could be treated as a member for invoking Sections 397 and 398 of the Companies Act, 1956, despite no formal entry in the register of members. The Court held that the respondent was entitled to be treated as a member for the limited purpose of maintaining oppression and mismanagement proceedings. The Court relied on the company’s conduct in recognizing his proprietary interest, including his appointment as Managing Director, acknowledgment of entitlement to shares and utilization of his investment in the company’s business.

Comapny Law - May 2026.pdf

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