The Constitutionality of Disenfranchising Majority Shareholders: A Multidimensional Analysis under purview of Corporate Law

  • Ayush Patria and Dr. Aditi Sharma
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  • Ayush Patria

    Post-Law Graduate Freelancer cum Advocate, Corporate Advisory & Transactions

  • Dr. Aditi Sharma

    Assistant Professor, College of Law & Governance, Mody University of Science and Technology, Lakshmangarh (Rajasthan)

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Corporate governance is dependent on majority shareholders having significant influence over key decisions. Disenfranchisement, or the deprivation of these shareholders’ voting rights, raises significant legal and ethical concerns that call for in-depth analysis. The complex issue of majority shareholder disenfranchisement is examined in the paper within the framework of corporate law and constitutional issues. The first section of this paper discusses corporate law, particularly the privileges accorded to majority shareholders, their duties as fiduciaries, and the protection of minority shareholders’ interests. The author(s) have analysed the arguments for and against such tactics by way of looking at the historical instances and case studies that show corporate disenfranchisement. With reference to fundamental rights under the Constitution of India, like the right to property and the right to vote, in regard to corporate governance systems, this paper explores the interactions between corporate law and the constitutional law of India. Notably, the judicial precedents’ critical influence on the development of the legal environment has been considered while examining the legal consequences and issues surrounding disenfranchisement that have been presented before courts. This paper also evaluates the corporate governance norms and legislative frameworks put in place to address disenfranchisement issues, with an emphasis on how they manage the hazardous balance between majority shareholder control and maintaining shareholder rights. Also addressed is the effect of shareholder activism and dissent in opposing disenfranchised policies. The paper examines disenfranchisement from a comparative examination of national perspectives, taking into account the many legal and cultural influences that shape national perceptions of majority shareholders’ rights.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 6, Page 3058 - 3069


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