Although, a company has an existence independent from its
members, its affairs are carried on by its management. Difficulty
arises when the interests of shareholders vary. However, the
management of companies depends upon the majority.
Although, a shareholder cannot bring action relating to the
internal disputes between the shareholders as per the Foss v
Harbottle Rule, there arise certain exceptions to this
provision. This includes the cases of oppression and mismanagement
in the affairs of the company.
Oppressive Acts
The following acts constitute oppression:
- Company's conduct is against the
principles of fair dealing
- Imposition of new and risky objects
which are being opposed by the other faction of the
shareholders
