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Minority Shareholder Protection Against Oppression and Mismanagement

Closely-held companies me majority shareholders kabhi-kabhi company ko apni personal dukaan bana lete hain – related party deals, salary siphoning, assets transfer, board packing, etc. Jahan minority powerless feel karti hai, waha oppression and mismanagement remedies ka role aata hai.

Law minority ko ek special petition route de sakta hai jahan wo tribunal/court se bole:

  • Company affairs unfairly prejudicial chal rahe hain,
  • Unko squeeze out ya side-line kiya ja raha hai,
  • Profits artificial tareeke se hide kiye ja rahe hain.

Remedies bohot flexible hote hain – management change, share buyout, invalidation of shady transactions, even company winding-up in extreme cases. Purpose punish karna kam, long-term fairness restore karna zyada hota hai.

Minority ko bhi yeh dikhana padta hai ki woh sirf business risk se upset nahi, real abuse ho raha hai. Normal commercial decisions jisme profit kam hua, automatically oppression nahi. Evidence – emails, minutes, financials – yahan bohot important ho jata hai.

Jo log family businesses me small share leke enter karte hain, unke liye shareholder agreement and exit clauses first line of defence hone chahiye; law second line hai.

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