Section 59 of CA 2013 : Section 59: Rectification Of Register Of Members

Explanation using Example

Imagine that Sarah purchased shares of XYZ Ltd. and the transfer of shares was duly executed. However, due to an oversight by the company's secretary, Sarah's name was not entered into the register of members. After several requests for rectification and facing unnecessary delays, Sarah decides to seek legal recourse. She files an appeal to the National Company Law Tribunal (NCLT) under Section 59(1) of the Companies Act, 2013, for the rectification of the register to include her name as a member of XYZ Ltd.

The NCLT, after reviewing the case details and hearing both parties, determines that Sarah's name was indeed supposed to be entered into the register. Under Section 59(2), the NCLT orders XYZ Ltd. to register the transfer of shares to Sarah within ten days and also directs the company to pay Sarah damages for the delay and the inconvenience caused to her as per Section 59(2).