Prevention and oppression mismangement case laws

[CS A Rengarajan]

Dear All

 

The case of Needle Industries (India) vs. Needle Industries Newey (India) Holding Ltd. AIR 1981 SC 1298 is a landmark case on this subject and the Supreme Court’s decision in this matter continues to be an authority on the subject. In this case, the foreign majority alleged oppression by the Indian minority shareholders as the minority appointed additional directors and issued further shares.  The Company Law Board (“CLB”) and the High Court held such acts of the minority shareholder as oppressive. In an appeal, however, the Supreme Court observed that even if a case of oppression fails, the court has power to do substantial justice in the matter and therefore on the facts and circumstance of the case, the Supreme Court while rejecting the plea of oppression, directed the minority Indian shareholders to purchase shares held by the majority foreign shareholders.  source  law and legal development blog

 

 

I am forwarding famous case relating prevention and oppression of mismanagement.  We should extensively read the entire judgment to enhance our knowledge.  I hope our members will come forward to read the case and comment upon.

 

It is really helpful to  handle such situation comes whether in employment or in practice.

 

Similar such cases we need to read and analysis.

 

We must move on to higher stream and debate the pros and cons of  decision of each case

 

I hope all of you will agree my comments.

 

Best regards

--

ALL CS FAMILY MEMBERS -  PROUD TO BE MEMBER OF THE COMPANY SECRETARY BENEVOLENT FUND - 

csarengarajan
Company Secretary, Chennai
email csarengarajan@gmail.com

http://www.csarengarajan.blogspot.com

mobile 093810 11200
SHARING KNOWLEDGE SKY IS THE LIMIT

This mail and its attachments (if any) are confidential information intended for persons to whom the email is planned for delivery by the sender. If you have received this mail in error please notify the sender of the error by forwarding the email and its attachments (if any) and then deleting the mail received in error and the relevant email trail in this connection without making any copies or taking any prints.