Aaditya S. Menon, School of Law, Christ (Deemed To Be University)
ABSTRACT
The experiences of minority shareholders concerning Section 236 of the Companies Act 2013 are comprehensively analyzed in this article. It concentrates on the legislative purpose of harmonizing majority shareholders’ freedom to operate the company and guarding minority stockholders’ interests. Despite incorporating protective mechanisms, the article identifies those areas that cause problems because majority shareholders dominate over corporate governance. For example, where unity is needed, it compels minority shareholders to side with the majority, making them withdraw their objections and establish a unanimous common will’. The paper covers theoretical as well as practical aspects such as Foss v Harbottle. Another good illustration is Tata Consultancy Services Ltd v Cyrus Investment Private Limited and others, which show how corporations create legal uncertainties or gaps that may be exploited, thereby causing tyranny moments for minority shareholders. Furthermore, given the new challenges facing the Companies Act 2013, this article suggests strategies like facilitating group actions through legislation prone to whistleblowers' safeguarding since they are vital requirements.
Keywords: Minority Shareholders, Companies Act 2013, Majority Shareholders, Corporate Governance, Whistleblower’s Safeguarding
