• Research/Scholar Paper name – Shareholders Democracy In The Light Of Oppression And Mismanagement
  • Author: Sriparna Pal
  • Institution: Jogesh Chandra Chaudhuri Law College
  • Affiliation: Centre for Study of Contemporary Legal issues
  • Date of Publication: 22/01/2023

Abstract:

Shareholders Democracy is an important role for governing company law administration. It is also an integral part of “Corporate Governance.” The Satyam Scandal brought many changes or reforms in the company law administration. The concept came into force to provide rights to shareholders, so that they are informed about how their money are utilised in the company. It is the ability by which the shareholders manage the affairs of the company, either by themselves or through their elected representatives, i.e., the Board of Directors. From practical point of view, shareholders democracy emphasises on total control of the majority shareholders. Shareholders Democracy mainly depends on the voting right of the shareholder, availability of members in general meetings. When there are huge powers given to majority shareholders, they may tend to abuse their powers, which in turn affects the rights of minority shareholders in the form of oppression and mismanagement. There are certain criteria by which the minority shareholders apply to the Tribunal for relief in cases of oppression and mismanagement. But the term “oppression” and “mismanagement” has also been defined in the Companies Act, 2013. There are certain loopholes in this concept, but if these anomalies are removed and amended accordingly, then shareholders democracy can be run in an efficient way in the Company.  

Shareholders Democracy In The Light Of Oppression And Mismanagement

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