One's power to control and rule in a democratic set-up is
entwined with the system of voting and rights. In recent times,
India has witnessed the emergence of several start–ups in
various sectors and the struggle for controlling these start-ups is
like a sword hanging over the founders' neck. In order to grow
and endure the competition in today's world, these
start–ups require capital. However, the process of raising
capital is always followed by a fear of losing control over the
management of the company by giving away one's equity in the
company.
Recent trends in the global corporate sphere have led to the
emergence of various instruments and strategies which enable the
raising of capital without diluting the founders' control over
the management of the company. The Securities and Exchange Board of
India ("SEBI") has approved the issuance of Differential
Voting Rights ("DVR") Shares. Consequently, the
amendments made to the Companies Act, 2013 ("Act") and
its
