Can a minority shareholder take legal action against majority shareholders?

Corporate Legal Consultancy

Yes, where majority conduct violates the Companies Act, company documents or the minority shareholder's legal rights. Majority voting power does not authorize oppressive, discriminatory or bad-faith conduct.

Statutory protection

Section 139 allows a shareholder to seek court relief where company affairs are conducted or threatened in a manner prejudicial to the shareholder's rights or interests.

Possible remedies include orders stopping harmful conduct, requiring corporate action, awarding compensation, requiring share purchases or granting other appropriate relief.

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