In company meetings, all decisions are taken on the basis of majority, whether it is a meeting of the board of directors or a meeting of shareholders. Under these circumstances, there is a possibility that the majority (individuals) may misuse their rights by forming a group and which have the opposite effect on the minority. Courts or other authorities do not pass an adversarial order even after seeking intervention by the shareholders, unless the provisions of the memorandum or the Articles of Association have been contravened. It is clear that the responsibility of protecting minority interests becomes the responsibility of the Companies Act. Arrangements have also been made in this regard in the Companies Act so that the majority cannot unreasonably violate the rights of the minority and ignore the interests and the internal management of the company should be done smoothly and justly.
In relation to the company, the rule of majority or the dominance of the majority, the following things are important: 1. Every person who becomes a member of the company knows that all the decisions will be taken by the majority only.
2. The decision taken in a duly convened meeting with the requisite majority is applicable to all the members and the whole company.
3. A minority cannot ordinarily make any complaint against the decisions taken by the majority.
4. Decisions by majority are generally taken only while acting under the Articles
in which no interference can be made. 5. No action can be taken against decisions taken by majority unless
That there is no clear reason to believe that the decision taken is illegal.
6. No member or any representative or group of minority shareholders can ordinarily file suit against the company. Provided that if the director breaches any such duty as may be sued against any member either personally by the member.