Decoding the tribunal's power to grant waiver under Sec.244 of the companies act, 2013

Verma, Ananya, Puri, Kamakshi and Sidhu, Mehr (2020) Decoding the tribunal's power to grant waiver under Sec.244 of the companies act, 2013. NUJS Law Review, 13 (2). pp. 1-13. ISSN 0975-0029

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Corporate democracy, like its political counterpart, espouses the will of the majority as a key for the decision-making of a company. At the same time, corporate democracy ensures protections for minority members of a company from unfair prejudice caused to their interests. The need to balance the rights of majority and minority members in order to secure collective interests in the company is recognised under §241 of the Companies Act, 2013. §241 empowers the minority shareholders to seek relieffrom the Tribunal against acts of oppression and mismanagement committed by the majority while conducting the affairs of the company. This right of the minority shareholders, however, is contingent upon the members satisfying the locus standi - a numerical qualification -provided under §244. However, the Act also reserves to the Tribunal a right to grant a waiver of the locus requirement, enabling members not satisfying the numerical requirement to nonetheless make an application to the Tribunal for oppression and mismanagement. This paper delves into the factors that warrant the grant of such a waiver by the Tribunals with a particular emphasis on Cyrus Investments v. Tata Sons, which emerged as pivotal for this jurisprudence.

Item Type: Article
Keywords: Corporate democracy | Companies act, 2013
Subjects: Social Sciences and humanities > Social Sciences > Law and Legal Studies
JGU School/Centre: Jindal Global Law School
Depositing User: Mr. Syed Anas
Date Deposited: 29 Mar 2022 11:32
Last Modified: 29 Mar 2022 11:32
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