Legal Question in Business Law in India

Minority shareholder

Can a Managing Director of a company who is a minority share holder where major share holders are not part of the company board of directors refuse selling of a profit running company to third party?


Asked on 6/10/09, 3:21 am

2 Answers from Attorneys
Pranav Desai PD Legal & Associates

Re: Minority shareholder

Majority shareholder can sell its shares in the company in accordance with the Articles of Association. If the Articles requires permission of the board and as you have said the board is of minority shareholders in such case you can approach CLB for certain orders or consider wiping of the board in the shareholders meeting.

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Answered on 6/11/09, 5:54 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Minority shareholder

The majority may sell its share to any other person / company without consulting the minority.

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Answered on 6/10/09, 6:46 am


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