L RAMA SUBBU Vs. MADURA COLLEGE BOARD

JUDGEMENT

(1.) THIS is a petition filed by the petitioners under Sections 397 and 398 of the Companies Act, 1956 (hereinafter referred to as "the Act"), for declaration that the deletion of Articles 8 and 9 of the articles of association of the company in terms of the resolution passed in the general body meeting of the company held on March 14, 1992, is illegal and void and for restoration of the said Articles 8 and 9.

(2.) The respondent company was incorporated under the provisions of the Indian Companies Act, 1882, on June 9, 1905, with its registered office at Madurai, Madras (now called Tamil Nadu). The company is limited by guarantee.

(3.) THE articles of association of the company provide for control and management of Madura College and other educational institutions. THE qualifications for members are prescribed in the articles which are revised from time to time. Under the articles any person seeking admission should be a Hindu by birth or religion or sympathetic towards the ideals of Hindu religion, culture and civilisation and shall pay, on admission, a life subscription of Rs. 250 now increased to Rs. 500. A member possessing prescribed qualifications is admitted by a three-fourths majority of members present at the meeting of the company or by a majority of three-fifths of the total number of votes polled in the event of circulation by the executive committee. THE executive committee may invite persons of distinction to become a member and in such event the invitee need not pay the life subscription.