Majority shareholder trying to diminish shares of minority shareholder


Can a majority shareholder diminish or make shares of minority order diminish or null by infusing his own capital? How can minority shareholder protect himself?

Answers (3)


335 votes

Any act by the majority shareholders to diminish or reduce the shareholding of the minority shareholders would be considered to be an act of oppression against the minority shareholders under Section 241 of the Companies Act, 2013 and you can seek an injunction order against the majority shareholders from doing such an act and preclude the majority shareholders from diminishing or reducing your shareholding without your consent.


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111 votes

Taking into consideration the above said facts andyour query therein.


The above said issues ideally are depth under the company law , contract law , arbitration law if any.

However to enable a legal remedy one needs to go through the documents and other details. And it is suggested to enable a legal action accordingly.

Best Regards.

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73 votes

Respected Sir / Madam,
Minority shareholders can protect themselves by approaching sebi and showing that this action will cause great loss or injustice. Action should be taken immediately against the company to get the maximum results.

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