Shareholder Rights and Remedies in Modern Corporations: A Contemporary Indian Perspective
Keywords:
Shareholder Rights, Remedies, Corporate Governance, Companies Act 2013, SEBI Regulations, Voting RightsAbstract
This article delves into the current situation, the rights, and remedies of shareholders within Indian corporations in the context of the Companies Act, 2013 and governmental regulations laid down by the Securities and Exchange Board of India (SEBI). It outlines basic shareholder rights, such as voting, dividend, information, pre-emption and litigation rights. This article further explores the various remedies available to shareholders to address violations of their rights, including suits for damages, oppression claims, class actions and complaints to regulators. Close to half a billion people can cast votes to influence corporations, and there are protections built into the system about shareholders being able to sue for misconduct or decisions that negatively impact their investments, but ultimately, we still deal with issues like unequal voting power, ignorance to shareholder rights and protections, poor access to the legal system that benefits whoever has deeper pockets, and systemically holes in the regulatory system. It ends by calling for more awareness and enforcement mechanisms to facilitate an even-handed corporate governance for India.
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