Kapoor v. Kapoor: Section 397 and the Minority Shareholders' Right
company cuet_pg intermediate discussionKya Section 397 Companies Act apne right se minority shareholders ko bacha sakta hai? Main yeh samjhna chahta hoon ki Section 397 ko apply karna kisi case mein possible nahin hai, jab minority shareholders ke right ko oppress kiya ja raha ho.
Take apne pichhle sawal, kya aapko lagta hai ki agar majority shareholders minority shareholders ko jaan se maarna chahte hain, toh unhe Section 397 ka fayda uthne dein? Aur agar minority shareholders ko ek jaanwar ke samaan koi maanta bhi nahin ho, toh unki kya shaktayein hain?
Kya aap Section 397 ko minority shareholders ke right kaa prabhavit hai?
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Section 397 of the Companies Act, 1956 (now the Companies Act, 2013) deals with oppression and mismanagement. In Kapoor v. Kapoor, the Court held that the rights of minority shareholders cannot be ignored. Under Section 397, the Court can pass an order to remove or replace the directors in case of mismanagement. The key takeaway is that minority shareholders have a right to approach the Court for relief. This is a crucial provision for safeguarding the interests of minority shareholders.