Enhancing Minority Shareholder Rights: Legal Framework And Regulatory Challenges

Susmita Saha, Law School ICFAI University, Dehradun

Dr. Aashish Kumar Singhal, Associate Professor, ICFAI University, Dehradun

ABSTRACT:

This research article delves into the challenges faced by minority shareholders in exercising their rights under the Companies Act 2013 in India. It explores the legal complexities, procedural barriers, information asymmetry, and regulatory challenges that hinder the effective implementation of minority shareholder protections. Additionally, the crucial role of regulatory bodies in promoting transparency, accountability, and shareholder democracy is examined, alongside recommendations for improving the legal framework and regulatory oversight.

Introduction:

The protection of minority shareholders is crucial for fostering investor confidence, corporate governance, and sustainable business practices. However, the Companies Act 2013 in India presents various challenges and ambiguities that impede the effective exercise of minority shareholder rights. This article critically analyses these challenges and proposes strategies to address them.

Enhancing minority shareholder rights within the legal framework presents a critical endeavour in corporate governance, aimed at fostering fairness, transparency, and investor confidence. Despite regulatory provisions, challenges persist, ranging from implementation hurdles to regulatory complexities. This introduction delves into the importance of bolstering minority shareholder rights, the existing legal framework, and the challenges encountered in ensuring effective enforcement and compliance.