| Question And Answer | |
|---|---|
| Subject: | Suppression of minority |
| Category: | Companies Act |
| Querist: | Vilash |
| Answered by: | Research Team |
| Tags: | Companies Act, Suppression of minority |
| Date: | July 16, 2023 |
Suppression of minority. In a closely held listed company huge profits are earned but minority shareholders are aggrieved on following
1] mgt is drawing huge remunerations and incentives
2] minority shareholders have no say in mgt
3] pittance dividend is paid to minority
what is their remedy ?
The minority management can file an application to the tribunal for relief in cases of oppression under section 241 of the companies act, 2013(subject to fulfilment of eligibility criteria mentioned in section 244 of the Act). Alternatively, the minority shareholders can also engage in mediation or negotiations which will safe the minority shareholders from prolonged legal battle.
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