Publish: September 26, 2025
Section 8 Company Registration
How to handle disputes among members or directors in a Section 8 company?
1. Governing Document Framework
- Refer to the MoA/AoA clauses on dispute resolution
- Follow predefined quorum and voting procedures for decisions
- Enforce conflict-of-interest policies for directors
2. Internal Resolution Mechanisms
- Mediation by the Governing Board
- Emergency General Meetings for member disputes
- Written resolutions when physical meetings are unviable
3. Legal Recourse Options
- Arbitration (if mandated in AoA)
- NCLT intervention for deadlocks (Section 242, Companies Act)
- ROC complaints for governance violations
4. Preventive Measures
- Clear role definitions in policies
- Annual conflict declarations by directors
- Third-party audits for financial disputes
5. Membership-Related Disputes
- Exit mechanisms for dissenting members
- Share transfer restrictions (if applicable)
- Forfeiture procedures for non-compliance
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