Abstract
In recent days, most of the corporate are failing in managing business effectively and the major cause for this is conflicts between majority and minority shareholders of the company which lead to direct or indirect destruction of business at the end. Even though, there are certain laws and provisions made for the sake of minority shareholders, those are enforced well and needs to make them as utmost safeguards to minority shareholders. In this paper, we will discuss the issues for conflict including rights of minority shareholders as well as roles and responsibilities of shareholders by analyzing possible solution for conflicts between majority and minority shareholder.
Highlights
The Companies Act 2013 introduced significant changes in the provisions by introduction of new concepts and definitions as detailed below One-Person Small Company Dormant Company Independent Director Corporate social responsibility-based Governance, including E-Management, with effective Compliance & Enforcement
It is an evident fact that the majority shareholders have control and governance the corporate and so instinctively they are in the expedient position over the minority shareholders
Corporate need to protect the interest of minority shareholders through the corporate governance
Summary
Independent Director: In the Companies act 2013 term’ Independent Director’ has been defined as a person other than a Whole time Director (or) a Managing Director (or) a Nominee Director with a set of rules and regulations to be followed and are in line with requirements as per listed company’s agreement U/s 2 and Related. A) National Company Law Tribunal (Tribunal or NCLT): In accordance with the Apex Court Judgment on 11 May 2010, the companies act under section 407 to 434 has laid down the composition and powers of both b) The central government U/S 408 of the companies act 2013 has constituted the NCLT on 01-06-2016 c) In the first phase eleven benches has been set up in the NCLT which consolidates the corporate jurisdiction of the following (i) Company Law Board (ii) Board for Industrial and financial reconstruction (iii) Industrial financial Reconstruction appellate authority (iv) Jurisdiction and powers relating to winding up and restructuring.
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