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88
May 2015
Article
Effect of Secretarial Standards on the scope & ambit of jurisdiction of Oppression and Mismanagement
89
May 2015
Article
Effect of Secretarial Standards on the scope & ambit of jurisdiction of Oppression and Mismanagement
90
May 2015
Article
Effect of Secretarial Standards on the scope & ambit of jurisdiction of Oppression and Mismanagement
Conclusion
The various provisions in the Companies Act, 2013 no doubt
provide a platform for a better administration and management
of companies. However, the Secretarial Standards strengthens
the said provisions by bringing clarity in the administration
and management of companies, thereby providing a hope
for reduction of litigation in the jurisdiction of oppression and
management and encourage corporates to fight on qualitative
matters in case of a dispute. Moreover, Secretarial Standards
will provide a better platform to the board and members of
the companies to exercise corporate democracy and fight out
in a transparent manner in board and general meeting rather
than taking action unilaterally thereby forcing oppressed
shareholders to approach the Company Law Board under the
jurisdiction of oppression and mismanagement or even before
NCLT in times to come. At the same time, various elaborate
provisions carve out higher responsibilities on the professionals
to act in more transparent and responsible manner to bring in
better governance. Detailed provisions dealing with agenda,
notice, quorum minutes, attendance of meetings, resolution by
circulation, e-voting amongst others will surely are towards an
endevour for better governance and encouraging the litigants
to fight on quality and legitimate issues rather than taking
mechanism of unilateral decisions, which lead to high number
CS
of protracted litigations on these matters.
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May 2015