Can a member holding less than one-tenth of the share capital of the - company apply to the Company Law Board for relief against oppression

lacks that degree of probity which they are entitled to expect in the conduct of the company's affairs."
In Shanti Pd. Jain Vs. Kalinga Tubes Ltd., the Supreme Court observed:
"Oppression means any act exercised in a manner which is burdensome, harsh
and wrongful. The unjust and unfair conduct must be persistent." Thus, isolated acts of oppression will not normally be sufficient to justify relief under Section 397.
As per Section 398, Mismanagement may be alleged and can be complained of when (i) the affairs of a company are being conducted in a manner prejudicial to public interest or in a manner prejudicial to the interest of the company; or (ii) that any material change has taken place in the management or control of the company and that by reason of such change it is likely that the affairs of the company will be conducted in a manner prejudicial to the public interest or prejudicial to the interest of the company.
It may be noted that the mismanagement complaint should be present and continuing. The charges of mismanagement in the past, even if proved, are not sufficient to establish an existing injury to the interests of the company.
(b) 0 can apply for relief in case of oppression and mismanagement
ecti~n 399 specifies the persons who are entitled to apply to the CLB for relief in cases of oppression and mismanagement complaint in pursuance of Sections 397 and 398. The number necessary to make such an application is:
(i) In the case of a company having a snare capital-100 members or 10 per cent
of the total number of its members, whichever is less, or members holding 10
per cent of the issued share capital;
(ii) In the case of a company not having share capital-20 per cent (one-fifth) of
the total number of its members.
The Central Government is, however, empowered in an appropriate case to
authorise any lesser number of members to make such an application to the CLB.
It may be noted that joint holders of any share or shares are counted as one member. To be entitled to make the application, the members must have paid all the calls and other sums due for their shares.
Also, note that Section 401 empowers the Central Government itself to apply to the Company Law Board for an order under Section 397/398 or cause an application to be made to the CLB for such an order by any person authorised by it in this behalf.
Q: 3. QABC Private Limited is a company in which there are eight shareholders.
q Can a member holding less than one-tenth of the share capital of the - company apply to the Company Law Board for relief against oppression
and mismanagement?
'@) tt is alleged by the said member that the Directors of the company have
misused their position in making certain inter-corporate deposits which are against the interests of the company. Will the Company Law Board entertain application containing such allegation in the case of a private
company? fC.A. (Final) May, 2000J

.9Lns. (a) Section 399 provides for the persons who can make a valid application to the Company Law Board for relief against oppression and mismanagement. With respect to the members/shareholders who can "apply, Section 399 states that, in the