A shareholder in Canada can petition the National Company Law Tribunal under sections 241 and 242 of the Companies Act 2013 against oppression and mismanagement, or under section 59 to correct the share register. The verifying affidavit is signed before a Canadian notary or lawyer and apostilled. Your advocate appears at hearings, which NCLT benches also conduct by video.
- Document route
- Notary or lawyer, then apostille from Global Affairs Canada or the provincial authority
- Time difference
- IST is 9h30 (Ontario, summer) to 13h30 (British Columbia, winter) ahead
- Law
- Companies Act 2013, sections 241 to 246
- Forum
- NCLT bench of the registered office state
Shareholder Disputes & NCLT from Canada: how it works
We download the company's records from the MCA portal and look for the allotments, resignations and meetings you were never told about. A notice is sent seeking inspection of registers and minutes. If the record shows that shares were allotted to relatives at par while you were in Canada, or that your resignation was filed without your signature, the petition is drafted around those acts, with forensic examination of signatures if needed.
The petition is filed at the bench for the company's registered office, such as Chandigarh for companies registered in Punjab, Haryana or Himachal Pradesh. Where your holding has been pushed below 10 per cent, we seek a waiver. Interim relief can freeze the company's assets or further allotments. Outcomes include cancelling the allotment, restoring your directorship, or a buy-out at a fair value, which is then remitted to Canada after FEMA compliance where your holding was repatriable.
What clients in Canada should know
- Do not delay: the limitation period generally runs from the act complained of, even if you were in Canada at the time.
- Keep your Canadian address and email updated with the company; notices sent to an old Indian address are a frequent excuse.
- Capital gains from a buy-out are taxable in India and reportable to the CRA.
Step by step from Canada
Video consultation
A call at a time that suits Canada, after we have read your documents.
Documents signed in Canada
Notary or lawyer, then apostille from Global Affairs Canada or the provincial authority
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Canada where needed.
The full guide
This page covers what changes when you are in Canada. For the law, the documents and the step-by-step procedure, read our main page on Shareholder Disputes & NCLT, or see all services for clients in Canada and the Disputes & Enforcement practice area.
Questions from clients in Canada
Can the NCLT hear my case by video?
NCLT benches conduct hybrid hearings. Your advocate usually appears and you join by video if required.
I only learnt of the allotment now. Is it too late?
Not necessarily. Limitation depends on when the act happened and whether it is continuing. Get advice quickly.
Will the company have to buy my shares?
The Tribunal can order a purchase by the company or other members at a fair value if that is the just remedy.