Discuss: Whether non-holding of the meetings of the Board of Directors would amount to oppression of minority shareholders?
CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · June 2023
Discuss: Whether non-holding of the meetings of the Board of Directors would amount to oppression of minority shareholders?
Answer & Explanation:
In the case of Chandra Krishan Gupta v. Pannalal Girdhari Lal Pvt. Ltd. , it was held that "The non-holding of the meetings of the Board would not amount to oppression of minority shareholders. The rights of the petitioner as a director might have been affected but his rights as a minority shareholder have not been affected thereby". Therefore, in view of the above, it can be said that non-holding of the meetings of the Board of Directors would generally not amount to oppression of minority shareholders. While it might affect a director's rights, it does not directly impinge on the rights of a shareholder in their capacity as a minority shareholder unless specific oppressive actions are linked to the lack of board meetings.
Topics: Oppression and Mismanagement
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