corporate laws-company law-minority-majority shares-division--not submit acctts
4 years ago
#whether arbitration can be taken up for all above categories of questions as the majority shareholder acting roughly against minority shareholder
A.Hi
You should be aware that minority share holders generally complain of mismanagement, oppression and unfair prejudice against the majority share holders and these complaints are generally triable at National COmpany Law Tribunal under sections 241-245 of companies act.
Supreme court had in Ayyasamy vs Paramasivam had observed that disputes which are within the exclusive jurisdiction of specialized tribunals to the exclusion of ordinary civil courts in pursuance of a specific social
objective may also be inarbitrable under the Indian Arbitration Act, 1996.
Also since the complaints of mismanagement, oppression and unfair prejudice has to be evaluated based on the following tests namely
A)Remedies Test
b) Bifurcation of Claims test.
c) Necessary parties test,
d) Totality test,
and as such only National COmpany Law Tribunals are vested with specialized statutory powers that are not ordinarily exercisable by Arbitral tribunal.
So, you may approach the National Company Law Tribunal for redressal of your grievance.
Hope this information is useful.
You should be aware that minority share holders generally complain of mismanagement, oppression and unfair prejudice against the majority share holders and these complaints are generally triable at National COmpany Law Tribunal under sections 241-245 of companies act.
Supreme court had in Ayyasamy vs Paramasivam had observed that disputes which are within the exclusive jurisdiction of specialized tribunals to the exclusion of ordinary civil courts in pursuance of a specific social
objective may also be inarbitrable under the Indian Arbitration Act, 1996.
Also since the complaints of mismanagement, oppression and unfair prejudice has to be evaluated based on the following tests namely
A)Remedies Test
b) Bifurcation of Claims test.
c) Necessary parties test,
d) Totality test,
and as such only National COmpany Law Tribunals are vested with specialized statutory powers that are not ordinarily exercisable by Arbitral tribunal.
So, you may approach the National Company Law Tribunal for redressal of your grievance.
Hope this information is useful.
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Chitra Sundar
Responded 4 years ago
A.Kindly check your shareholders agreement or share purchase agreement to see if there as an arbitration clause or alternative dispute resolution mechanism.
If there is no such clause, all the shareholders may agree to resolve the dispute by arbitration.
If there is no such clause, all the shareholders may agree to resolve the dispute by arbitration.
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A.Dear Sir,
Such big issues will be decided by the Company Court. If you find arbitration clauses and definitions and clauses there in to decide proposed matters/issues then Arbitrator can also deal and decide such issues. Please refer Memorandum of Articles and Articles of Association.
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Such big issues will be decided by the Company Court. If you find arbitration clauses and definitions and clauses there in to decide proposed matters/issues then Arbitrator can also deal and decide such issues. Please refer Memorandum of Articles and Articles of Association.
===================================================
Please give me Rank 5 and Review my Resume and Follow Me.
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Ayantika Mondal @ Prime Legal
Responded 4 years ago
A.Hi,
The cause of action seems to be on behavior grounds not on any commercial dispute, however, if any act carried against the clauses of the agreement, you can initiate the arbitration proceedings.
thanks
The cause of action seems to be on behavior grounds not on any commercial dispute, however, if any act carried against the clauses of the agreement, you can initiate the arbitration proceedings.
thanks
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Sidhaarth
Responded 4 years ago
A.If there is an agreement among share holders containing arbitration clause then as such no restriction to arbitrator in adjudicating referred dispute. Any share holder possessing 10 percent share holding can approach National Company Law Tribunal. Details required to understand the dispute in order to suggest remedy. If required consult with details.
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