Whispers Of Equity: The Melody Of Majority And The Murmurs Of The Minority In Indian Corporate Realm
- IJLLR Journal
- Oct 14, 2023
- 1 min read
Shreyas V. Nair, BA LLB, Symbiosis Law School, Nagpur
ABSTRACT
Corporate governance has achieved significant importance in the contemporary period and has become a national concern in India. Strong corporate governance practises are essential for both developed and developing countries to achieve their economic goals Shareholders' rights should be fully safeguarded, and they should be able to participate in and have a say in company strategic choices. In a business environment that increasingly values diversity and inclusion, it is crucial to recognise and protect the rights of minority shareholders. In India, minority shareholders produce a vital part in promoting governance and ensuring transparency in the process of making choices.
Squeeze-outs, although providing apparent and concrete evidence of a controlling shareholder's dominance over corporate machinery, might paradoxically lead to value improvement by allowing the controller to purchase the entire firm. To carry out a squeeze-out, an unavoidable acquisition, a share consolidation, a plan of arrangement, or a capital reduction, controllers in India have recourse to a few different transaction structures. Controllers most usually employ the diminution of strategy, which offers minority shareholders the least protection. This article focuses on a study of the minority squeeze outs in Indian Corporate regime since minority shareholders are still vulnerable to dominance by majority shareholders through a range of techniques.
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