Majority Rule and Minority Protection under Companies Act 1956 with special reference to Foss vs. Harbottle

Abstract

Like a democratic country, Company Law provides for adequate protection for the minority shareholders when their rights are trampled by the majority. In the Company Law regime from the rule laid in Foss v Harbottle it can be said that the Court will not intervene at the instance of shareholders in matters of internal administration, and will not interfere in the management of a company by its directors so long with they are acting within the powers conferred on them under the articles of the company.