Supreme Court Affirms Deemed Membership in Oppression Cases, Register Entry Not Decisive

The Supreme Court of India held that entry of a person’s name in the register of members is not mandatory to claim “membership” for initiating oppression and mismanagement proceedings under the Companies Act.

The case arose from a dispute where an investor, despite contributing funds and being treated as a stakeholder, was denied membership due to the absence of formal entry in the register.

The Court emphasised that such proceedings are equitable in nature and that membership can be established through conduct, investment, and recognition by the company.

It upheld the concept of “deemed membership” and dismissed the company’s appeal.

[Dr. Bais Surgical & Medical Institute Pvt. Ltd. & Ors. v. Dhananjay Pande]