Grand daughters of promoters of professionally run company cannot claim proportional representation in management of company by being a family member alone

COMPANY LAW BOARD, Additional Principal Bench, Chennai G. Vijayalakshmi v/s. Tirupur Textiles (P.) Ltd. SMT. LIZAMMA AUGUSTINE, Member C.P. NO. 3 OF 2007 SEPTEMBER 6, 2010 ORDER 1. This is a petition filed by two shareholders of a family company, under sections 397 and 398 of the Companies Act, 1956 (hereafter to be referred as “the Act”). The averments in the petition can be briefly stated as below : The first respondent-company, Tirupur Textiles was incorporated on January 19, 1956 and later the articles have been amended adopting a new set of articles with effe...