Critical Analysis Of Just & Equitable Ground For Winding Up In Context Of Legislative Recommendation

Critical Analysis Of Just And Equitable Ground For Winding Up In Context Of Legislative Recommendations And Ease Of Doing Business

Tushar Suman & Tushar Rajesh Shirke, Symbiosis Law School, Nagpur, India

I. ABSTRACT

The authors will be doing analysis of “the just and equitable ground” which is one of the prominent grounds for winding up a company incorporated all over the world. Just and Equitable ground of winding up is unfettered power which is granted to the courts through various company law act of various countries respectively. In India power of tribunal to wind up company on just and equitable ground is granted under section 2421. The power is regarding winding up the company if the affairs of the company are oppressive or if company loses its ability to achieve core goals for which it was setup in a situation of deadlock among directors of company. The authors analysis will be pondering upon determining whether the concept of winding up of a company on just and equitable grounds is a draconian or an imperative concept inculcated in the Company’s Acts around the world. In the first half of the paper, we’ll be dealing with history and rationale of this provision in consonance with minority shareholders. Our 2nd part of the paper will be about how courts have construed this provision of “Just and Equitable ground” for winding up of companies by resorting to judicial pronouncements of courts over the years and our 3rd head will contain policy recommendations that legislative can adopt for making just and equitable ground as less vague or ambiguous along with that, authors related “just and equitable” ground from the point of view of “ease of doing business” and then final part of this paper contains conclusion.

Keywords: Just and Equitable, Winding Up, Shareholders, Company, Ease of doing business, policy recommendations.