“SHAREHOLDER’S RIGHTS AND REMEDIES UNDER THE COMPANIES ACT, 2013”

AUTHOR – ANANYA SINGH, STUDENT AT AMITY LAW SCHOOL, AMITY UNIVERSITY, PATNA

BEST CITATION – ANANYA SINGH, “SHAREHOLDER’S RIGHTS AND REMEDIES UNDER THE COMPANIES ACT, 2013”, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (13) OF 2025, PG. 711-721, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

The Companies Act, 2013 represents a transformative milestone in the evolution of corporate governance in India, making a decisive departure from the comparatively managerial-centric framework under the Companies Act, 1956. Designed to enhance transparency, accountability, and shareholder empowerment, the 2013 Act introduces a more comprehensive, rights-based scheme for company members. Its legislative architecture explicitly recognizes shareholders not merely as contributors of capital but as indispensable stakeholders whose participation, scrutiny and oversight are central to the integrity of the corporate form. This expanded statutory consciousness is reflected in strengthened voting rights, enhanced access to information, increased participation in meetings and procedural innovations such as postal ballots, e-voting and electronic dissemination of documents. However, conflicts often arise between majority and minority shareholders, necessitating statutory safeguards and legal remedies. This study seeks to examine the scope and effectiveness of shareholders rights and remedies as provided under the Companies Act, 2013, with special reference to the protection of minority interests. Shareholders are not interested in their active interest in the work and management of the company.

In India, there are several remedies available for shareholders which protect their rights, these includes derivative action, fraudulent activities, false statement and documents, etc. protection and evaluation of shareholders is important in and necessary for creating fair, transparent and responsible corporate world. The research primarily aims to identify whether the rights granted to shareholders, such as voting rights, dividend rights, right to information, and participation in meetings are adequate and effectively enforced in practice. It further investigates whether the statutory remedies available under section: 241-246 (oppression and mismanagement) and section: 245 class action suits) provide sufficient protection against managerial abuse and corporate misconduct.

Keywords: Shareholders Rights, Minority Protection, Oppression and Mismanagement, Corporate governance.