Tata-Mistry spat: What it means for minority and small shareholders

Experts explain the distinction between the rights of small and minority shareholders in public-listed and private companies

Topics
Tata vs Mistry | Tata group | Cyrus Mistry

Sudipto Dey  |  New Delhi 

The Supreme Court order in the Tata-Mistry case has put the spotlight on the rights of minority and small shareholders in public and private companies. The court pointed out that there is no statutory provision under Company Law that entitles the minority shareholder — namely the Mistry group — to claim proportionate representation on the board of a private company.

However, minority shareholders could enjoy this right to board representation only if it is specially created through the firm’s Articles of Association. Interestingly, there is provision in the law that ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 02 2021. 06:10 IST
RECOMMENDED FOR YOU
.