The directors of a company exercised dominating influence over the minority shareholders. The dividends were not paid and there was mal-administration by the directors. What is the remedy to the minority share holders?
If a majority of shareholders adopt an aggressive method to oppress the minority’s view, then the minority share holders can approach the Court for remedy including compulsory winding up of the company by Court order.
The same view was held in Sabapathi Rao Vs. Sabapaty Press, Ltd, wherein the Court held that oppression of minority by majority share holders was a valid ground for winding up of the company.