Is Minority Shareholders Rights Law Necessary in the Corporate World in India?

Authors

  • Moonmoon Malik

Keywords:

Corporate,, Directors,, Shareholders

Abstract

In the Corporate world, the shareholder are the ones who are the entities, which is needed to be taken into consideration. The Shareholders are voiceless and there are very few chances for the shareholders to take an extra step for their profits. The Shareholders are under the Directors in every aspect. The Directors are always in a dominant position than the Shareholders in the Company. The shareholders and directors are the most important pillars of the corporate world. Therefore, there should be a concern to identify the needs of the shareholders as the Directors are the ruling entities. The Directors sometimes takes decisions which are in favour of themselves and the Shareholders face a lots of unfair circumstances. One of the important issues which is to be taken into consideration in the corporate world, is that the shareholders invest a value in the company as Share’s. The have the right to know the details of the company working. The Shareholders are the ones who are the owner of the shares of the stock in a corporation. They are also known as the Stockholders. Being a shareholder they have the authority to receive dividends for each share as mentioned authorized by the board of the directors in the company. Another issue which has been faced by the shareholders are the rights which are in shortage in case of the minority shareholders. The minority shareholders are the one not is a well versed position that of the majority shareholders. The minority shareholders may face some problems as their voice is not as louder as the majority shareholders. The minority shareholders are those who are less in number as their name indicates in the company. Such divisions are made on not matching of the interest as well as the decisions of the company. The directors are only the entities by whom the shareholders are getting dominated in the corporate world but also among themselves there is a disagreement of the decisions taken. Therefore, this article main object is to portray the need of the Shareholders Rights Law in the Corporate World. In this Article, the main focus would be on the shareholder’s rights in the corporate world in India as well as on the problems face by the minority shareholders in the company and remedies for them to deal such situations.

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References

www.thehindu.com

www.businessline.com

www.taxguru.com

The companies act. 1956

The companies act, 2013

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Published

30-05-2018

How to Cite

Moonmoon Malik. (2018). Is Minority Shareholders Rights Law Necessary in the Corporate World in India?. Research Ambition: An International Multidisciplinary E-Journal, 3(I), 01–10. Retrieved from http://researchambition.com/RA/index.php/ra/article/view/70

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Articles