What is the primary purpose of Sections 241 and 242 of the Companies Act, 2013?

To provide an alternative remedy for winding up profitable companies.

To regulate the conduct of directors and managers in a company.

To prevent oppression and mismanagement in a company.

To define the roles of shareholders in decision-making.

In the context of Section 241, what constitutes "oppression" as per Lord Cooper's explanation?

Any visible departure from financial standards.

Conduct involving unjust burdens on shareholders.

Aggressive business expansion by majority shareholders.

Strict adherence to literal interpretation of laws.

Under which circumstance can the Central Government apply to the Tribunal under Section 241?

When the company's affairs are being conducted in a profitable manner.

When the majority shareholders are mismanaging the company.

When the company's affairs are being conducted prejudicial to public interest.

When the company has incurred financial losses.

Which of the following is not a power granted to the Tribunal under Section 242?

Appointment of new directors to report to the Tribunal.

Approving a change in the company's registered office.

Termination of agreements between the company and managing directors.

What is the consequence of an order under Section 242 that alters the memorandum or articles of a company?

The company can alter its memorandum or articles without any restrictions.

The company cannot alter its memorandum or articles without Tribunal's permission.

The company must notify all shareholders of the alteration.

The alteration has no legal effect on the company's operations.

Under Section 243, what is the consequence of an order terminating or modifying an agreement?

The company must compensate the party affected by the termination.

The agreement becomes void and unenforceable.

The affected party can file a civil suit against the company.

The agreement remains in force despite the order.

What is the primary purpose of a "class action" suit under Section 245?

To protect the interests of the company's directors and managers.

To facilitate consolidation of financial statements.

To allow members or depositors to claim personal damages.

To seek relief on behalf of a group of members or depositors.

What is the liability of an audit firm and its partners under Section 245?

Audit firm is liable, but partners are not.

Only the lead applicant is liable.

Audit firm and all partners are liable.

Liability only applies to partners involved in financial matters.

What is the condition for members or depositors to file an application under Section 245?

No specific condition is required.

The total number of members or depositors must be at least 50.

The company must be publicly listed.

The management must have a history of financial mismanagement.

What is the consequence if a company fails to comply with an order passed under Section 245?

The company's directors will be removed from their positions.

The company will be immediately wound up.

The company will be barred from raising capital.

The company and its officers will be subject to fines and imprisonment.

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