Minority Shareholders vs. DEF Pvt. Ltd. — Oppression and Mismanagement
Summary
Order on petition under Section 241-242 alleging oppression and mismanagement, discussing the scope of relief available to minority shareholders.
Order Details
The petitioners, holding approximately 25% of the share capital of the respondent company, filed this petition under Sections 241-242 of the Companies Act, 2013, alleging acts of oppression and mismanagement by the majority shareholders.
The petitioners alleged that the majority shareholders had systematically excluded them from management, failed to hold annual general meetings, and diverted company funds for personal benefit.
The Tribunal considered the settled principles governing oppression and mismanagement petitions, including the requirement to demonstrate a continuing pattern of oppressive conduct and the need for relief in the interest of the company as a whole.
After examining the evidence, the Tribunal found merit in several allegations and directed the appointment of an independent auditor to examine the financial affairs of the company. The Tribunal also passed interim orders for maintaining the status quo regarding the company's assets.
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