1924 (11) TMI 4

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....ct. The learned Judge who heard the petition admitted evidence both documentary and oral adduced by the petitioners, but he did not call upon the respondents to adduce any evidence, as he thought that no case had been made out for winding up the company. He made some observations to the effect that everything that had taken place in the company's proceedings might not be quite regular and prop....

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.... case before us. There, as in the present case, it was alleged that the directors were able to exercise a dominant influence on the management of the company and the managing director was able to outvote the minority of the shareholders and retain the profits of the business between the members of his family. Their Lordships held that, where there was a lack of confidence in the conduct and manage....

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....other persons, thereby making a profit to himself which might have been secured to the company if the sub-leasing of the rights of lessees had been prohibited. Then Rule 109 of the Articles of Association in Table A of the 1st Schedule of the Indian Companies Act requires that a copy of the balance sheet and the Director's report should be sent to every person entitled to receive notice seven ....

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....ompany raised an untenable defence that they were not responsible for the appropriation of dividends made by the former treasurers under" an arrangement between those treasurers (Arumugam and Sambadham Mudaliar) and Ramachander and Co., their present Treasurers and they refused to pay the dividend on that plea. That plea was found to be untenable, and the shareholder got his decree and the company....