Under the Companies Act, the principle of corporate democracy centers around shareholders exercising their rights through voting mechanisms, typically in general meetings – Ranga Raju Kosuri and Anr. Vs. Paradise Ventures Pvt. Ltd. and Ors. – NCLT Hyderabad Bench
It is well established that under the Companies Act, the principle of corporate democracy centers around shareholders exercising their rights through voting mechanisms, typically in general meetings. This ensures majority rule while safeguarding minority rights, thus promoting accountability and fairness in corporate governance. Therefore, unless there is a clear violation of minority rights, the majority prevails.