ANALYSIS OF POLICY FOR PREVENTION OF MINORITY SHAREHOLDERS AND OPERATION MISMANAGEMENT

In the process of decision making in any part of organization is depend on the system which is called voting. And decision is taken based on the majority. That’s full and final. But every decision making have its own method and preceding which we have to follow it. And decision taken by it is accepted by everyone. Now in the corporate culture decision is made in board meeting by the voting of shareholders. Every shareholders have right to vote in general meetings depends on their holdings and types of share. In appreciation of holding there are greater part shareholders holding immense measure of offer contrast with minority shareholders. The said procedure is disappointed when there is a contention of feeling between the greater part and minority shareholders whereby, majority shareholders take choices, not in light of a legitimate concern for the organization but rather to take into account their impulses and likes gravely prejudicing the privileges of minority shareholders. The Companies Act, 2013 thought of the answer for handle the issues which are normally looked by the minority shareholders. However, there is no clarity of act toward define who is the minority shareholder. So that objective of paper is that to analysis the impact of after amendment of minority shareholder in Companies Act 2013.

KEYWORDS: Minority Shareholder, Operation and Mismanagement, Companies Act 2013


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