Action Against Oppression & Mismanagement Under Company Law

  • Jhalak Singhal
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  • Jhalak Singhal

    Student at University of Petroleum & Energy Studies (UPES), Dehradun, India

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Oppression and mismanagement are common issues faced by stakeholders in a company, leading to negative consequences for both the company and its stakeholders. Oppression refers to the abuse of power by a majority of shareholders to the detriment of minority shareholders. On the other hand, mismanagement refers to the poor administration and management of the company, leading to negative financial or operational outcomes. Under company law, several actions can be taken to address these issues. For instance, in the case of oppression, minority shareholders can file a complaint with the court seeking relief under the provisions of the Companies Act. The court may then order the majority shareholders to rectify the oppressive actions or even appoint a new board of directors to manage the company. Similarly, in the case of mismanagement, stakeholders can approach the court seeking the removal of the current management and appointment of a new board. Additionally, the company's articles of association may provide for alternative dispute resolution mechanisms such as arbitration or mediation to resolve disputes. Furthermore, the Companies Act also provides for the inspection of the company's books and records by stakeholders to ensure that the management is acting in the best interests of the company and its stakeholders. If any irregularities are found, stakeholders can approach the court for appropriate relief. In conclusion, the Companies Act provides various avenues for stakeholders to address the issues of oppression and mismanagement in a company. It is essential for stakeholders to be aware of their rights and remedies under the law to effectively address such issues and protect their interests.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 1, Page 1271 - 1287


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