January 2025
Intermediate to advanced
540 pages
18h 10m
English
Content preview from Legal Aspects of Business
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CHAPTER 31
MAJORITY RULE AND MINORITY RIGHTS: PREVENTION OF OPPRESSION AND MISMANAGEMENT
Majority and minority define whose opinion or rule will prevail. Democracy is such a structure where supremacy is entrusted in the hands of majority. Shareholder’s democracy means shareholder’s supremacy either directly by them or by their elected representatives.
As we know democracy means rule of people, by the people and for the people, in the same way in shareholder’s democracy there is rule of shareholders, for shareholders and by shareholders. It a framework where co-shareholders can express themselves as their right to speak, they can inspect the ongoing of the company, etc.
The Companies Act has distributed the power between the two groups: (a) Board ...
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