Position of Minority Shareholders in Shareholder’s Agreement under Indian Legal Framework
A Share-holder is one of the most important documents in a company, defining the rights, responsibilities, and powers among the shareholders, which serves as a contribution to stability and conflict resolution. The shareholders are diverse, with the minority shareholder often not being able to influence decision-making, and the SHA will govern matters of share transfer, voting, and dividend policies that often favours a majority shareholder. Since SHAs are not specifically governed in the Indian legal framework, even the general provisions of Sections 6 and 58 of the Companies Act go a long way in governing validity and shareholder rights. The research paper will address the role of minority shareholders in SHAs and their legal protection and compare this approach of India with other common law jurisdictions, such as the USA, looking at judicial trends and real-life implications.
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