10 Important Clauses For Every Articles of Association-

Minority Shareholders rights on important decisions of the Company

The Shareholders who have a stake on the company are known as investors of the company. Many of them hold significant shares of the company and others at the same time hold minority shares. The minority shareholders must be protected at any cost. The minority shareholders shall also be given the rights that is deserved by them and shall also be involve in the active participation of the company’s day-to-day activities. If a minority shareholder feels that a particular decision is not appropriate for the company then they can step into the shoes and make the decision for and on behalf of the company.  To provide such interest to the minority shareholders this clause is necessary for the articles of association as it gives the rights to the minority shareholders to participate in the affairs of the company. When taking small or big decisions if the minority shareholders feel that these decisions are important then they can step in and make the decision. Minority shareholders should be given rights to take important decisions along with the managers of the company. The decision of the minority shareholder in consultation with the manager of the Company shall be duly respected and adhered to. They shall also be able to reap the benefits of the company and shall not be left out.

by Ram Maroo

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