Tata-Mistry spat: What it means for minority and small shareholders

Experts explain the distinction between the rights of small and minority shareholders in public-listed and private companies

The Supreme Court order in the Tata-Mistry case has put the spotlight on the rights of minority and small shareholders in public and private companies. The court pointed out that there is no statutory provision under Company Law that entitles the minority shareholder — namely the Mistry group — to claim proportionate representation on the board of a private company. However, minority shareholders could enjoy this right to board representation only if it is specially created through the firm’s Articles of Association.

Interestingly, there is provision in the law that gives small shareholders the right to ask for representation on