SHAREHOLDER RIGHTS AND MINORITY PROTECTION

Abstract

The nature of corporate governance in India necessitates the sheltering corporate governance in these minority shareholders especially considering the dynamic state of the regulatory environment and such a promotion controlled firm system in place. In the current chapter, the author will take a look at the elements of legal provisions and the steps to undertake in preserving the minority shareholders in India. It controls their result on known hurdles like dealing with familiar parties and malpractices. There were also new events in the area of the company law and the capital market regulation which was supposed to help minority shareholders to have more power and make the corporate environment more tolerable (Hou and Tang, 2024) and bring about recent developments. It further discusses institutional investors and independent directors can aid minority rights as well as pursuing the issues behind concentrated forms of ownership practiced in most Indian firms (Pangeran, 2020). The analysis presented should provide clear picture of the current state of minority shareholder protection in India identifying both the positive developments and the still present problems that should be solved with more legal and structural demands (Wani et al., 2023). It talks about the evolution of corporate governance in India and how nearly alterations in the corporate ecosystem impacted the way these vulnerable stakeholders have been protected (Bhattacharyya, 2020). Also, in the chapter, a comparative analysis will be used based on the international best practices to identify areas in which Indian system can be developed on lessons of other states, where the minority protection laws are strong (Polovina and Peasnell, 2020). Specifically, it will assess the effectiveness of current regulatory policies to reduce risks of diversification challenges of concentrated ownership structures, which are bound to instigate the concerns between the majority and minority shareholders (Ahmad et al., 2021). Further, it will evaluate the effectiveness of judicial dynamism and regulatory application to minority shareholder rights in connection to high profile judicial rulings and prosecution proceedings through which corporate responsibility has been altered in India. This will be considered as well as the impacts of the environmental, social, and governance factors on the corporate accountability and their connection to the safeguarding of the interests of the minority shareholders in India (Choudhury et al., 2022).