The Tata-Mistry episode has
brought into focus the minimum shareholding threshold required for a minority
shareholder to bring an action for oppression and mismanagement under sections
241 to 244 of the Companies Act, 2013. In a piece in Bloomberg Quint titled Minority
Shareholder Protection as a Numbers Game, I examine the implications of
such shareholding thresholds that operate as a filter, which seeks to weed out
frivolous and vexatious suits from the genuine ones. However, as I argue in the
piece, such a quantitative threshold raises a number of issues and is minority
shareholder unfriendly, thereby requiring a review of the policy surrounding
such an approach.
brought into focus the minimum shareholding threshold required for a minority
shareholder to bring an action for oppression and mismanagement under sections
241 to 244 of the Companies Act, 2013. In a piece in Bloomberg Quint titled Minority
Shareholder Protection as a Numbers Game, I examine the implications of
such shareholding thresholds that operate as a filter, which seeks to weed out
frivolous and vexatious suits from the genuine ones. However, as I argue in the
piece, such a quantitative threshold raises a number of issues and is minority
shareholder unfriendly, thereby requiring a review of the policy surrounding
such an approach.
