Tag: Minority Shareholders
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Selective Capital Reduction and Minority Exit: Supreme Court Clarifies the Law
[Bharat Vasani is Senior Advisor – Corporate laws and Maharshi Shah an Associate at the Mumbai office of Cyril Amarchand Mangaldas] Summary: This post examines the Supreme Court of India’s recent decision in Pannalal Bhansali v. Bharti Telecom Limited (2026), which considers the legality of selective capital reduction under section 66 of the Companies Act, 2013. It analyses key questions addressed…
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Protection of Minority Shareholder Rights: Addressing Shareholder Deadlocks
[Shreeji Patel is a student at National Law Institute University, Bhopal (NLIU)] A recent ruling in Escientia Life Sciences v. Escientia Advanced Sciences (P) Ltd. dated 21 March 2025 reflects the evolving approach of the National Company Law Tribunal (“NCLT”) in resolving shareholder deadlocks. The NCLT proposed a structured buy-out mechanism after observing that a continued deadlock would jeopardize…
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Analysing the Oppression Remedy in India: Is it “Just and Equitable”?
[Devika Bansal and Naina Bora are third-year law students at Gujarat National Law University, Gandhinagar] Spanning over a four-year period, the dispute in Tata Consultancy Services Limited v. Cyrus Investments Pvt. Ltd. recently came to an end with the Indian Supreme Court (“SC”) dismissing allegations of oppression and mismanagement. This SC judgement has highlighted how the oppression remedies provided under…
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SEBI’s Consultation Paper Makes Minority-Shareholder Friendly Proposals on Independent Directors
[Posted by Jayant Thakur] The Securities and Exchange Board of India (“SEBI”) has released a consultation paper making minority-shareholder friendly proposals mainly relating to independent directors (“IDs”). The paper proposes a dual-approval process for appointment and removal of IDs, which includes a “majority of minority shareholders” approval. If this approval is not received, a special…
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CCI’s Market Study on Private Equity: Time to Clear the Air?
[Priya Maharishi is a 4th-year B.A., LL.B. (Hons.) student at Jindal Global Law School, Sonipat, Haryana] The issue of common ownership and its impact on the competition landscape has preoccupied the Competition Commission of India (CCI) for a long time. The concern has become pressing in the light of increase in private equity (PE) investments…
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Paper on Shareholder Remedies: Oppression, Prejudice and Mismanagement
[Posted by Umakanth Varottil] Under company law, shareholders (particularly the minority) can resort to various remedies prescribed thereunder, such as oppression, prejudice and mismanagement. While Indian company law has incorporated versions of shareholder remedies since the mid-20th century, the design of the remedies as they currently operate finds place in sections 241 and 242 of…
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Hybrid Companies: Lacunae in the Tata-Mistry Decision
[Umang Pathak is a 4th year B.B.A., L.L.B. (Hons.) student at Jindal Global Law School in Sonipat, Haryana] The National Company Law Appellate Tribunal (‘NCLAT’), in its decision in Cyrus Investments Pvt. Ltd. v Tata Sons Ltd., had decided the on the question of mismanagement and oppression which purportedly impacted the internal democracy of Tata…