10% shareholding cap: Tata-Mistry battle put spotlight on rule

There are several instances where courts have dismissed petitions that do not meet the 10% threshold

Sudipto Dey  |  New Delhi 

As the high-profile legal battle at Tata Sons between the two promoter groups gathers pace, experts are divided as to whether there is need to take a fresh look at the provisions that protect the interests of minority shareholders. According to Section 244 of the Companies Act, 2013, shareholders who own at least 10 per cent of the issued share capital or represent at least one-tenth of the minority shareholders of the company could invoke action under “oppression and mismanagement of minority interest”. The National Company Law Tribunal (NCLT), however, has the powers to ...

TO READ THE FULL STORY, SUBSCRIBE NOW AT JUST Rs 149 A MONTH

Key stories on business-standard.com are available to premium subscribers only.

LOGIN

EMAIL / USER NAME
PASSWORD
REMEMBER ME Forgot password?
LOGIN

Not a member yet ? Resister Now

Connect using any below

  • Don't lose the opportunity of saving $26.77 per month
  • Don't lose the opportunity of saving $26.77 per month
Total Amount
Rs. 0.00
To proceed, kindly select a subscription package

WHAT YOU GET

On Business Standard Digital

  • Access your subscription from anywhere. Be it your computer, tablet or smartphone using a browser or the App, Your Choice.
  • Access to exclusive content, features, opinions and comment, hand-picked by our editors, just for you.
  • Pick your 5 favourite companies. Get all the news upates at the end of each day through E-Mail.
  • Pick the industry that you want to track. And get a daily news letter specific to that industry. Cut out the clutter.
  • And stay on top of your investments. Track stock prices in your portfolio
  • Access 18 years of archival data

On Digital

  • Seamless access to WSJ.com with your Business Standard digital account.
  • Experience the best of the Journal's reporting, video and interactive features.
  • Read about the people and events shaping business, finance, technology, politics, technology and culture.
  • Stay informed with newsletters - an easy way to get WSJ content straight to your inbox - making life easier on your busiest days.
  • More business executives read the Journal globally than any other publication.
*Note :
Our Partners are proud to be associated with this initiative and will contribute Rs 100 x 6 months thereafter, standard rate of Rs 149 will be charged.
Offer valid for Indian residents only
Requires you to share personal information like PAN, Date of Birth, and Income.
*Annual saving on WSJ subscription price of US$ 347.88 (12 months @ US$ 28.99 per month)
* 1US$ = 67.50 INR.
*Please note that this offer is not valid if you are/were a registered/existing user on WSJ Digital

10% shareholding cap: Tata-Mistry battle put spotlight on rule

There are several instances where courts have dismissed petitions that do not meet the 10% threshold

There are several instances where courts have dismissed petitions that do not meet the 10% threshold As the high-profile legal battle at Tata Sons between the two promoter groups gathers pace, experts are divided as to whether there is need to take a fresh look at the provisions that protect the interests of minority shareholders. According to Section 244 of the Companies Act, 2013, shareholders who own at least 10 per cent of the issued share capital or represent at least one-tenth of the minority shareholders of the company could invoke action under “oppression and mismanagement of minority interest”. The National Company Law Tribunal (NCLT), however, has the powers to ... image
Business Standard
177 22