LEGAL INTERNSHIP PROGRAM

Project Proposal

On

OPPRESSION AND MISMANAGEMENT UNDER

THE COMPANIES ACT,2013

Under Advocate Raj Shekar Rao Salvaji

By

INTURI.SADITHA MANJU LAHARI

19FLICHH020037

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 PROJECT INFORMATION DETAILS

Oppression and Mismanagement under The

Project Title
Companies Act, 2013

Mr. Raja Shekar Rao Salvaji

Project Guide

Faculty Guide Dr.Ritu Chhabra

Student Details
Inturi. Saditha Manju Lahari

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 Table of Contents

Page
S.No. TOPIC
Number

1. Synopsis 4

2. Objectives and Limitations 5

3. Proposed Methodology 5

4. Schedule and TimeLine 6

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 SYNOPSIS

Every company works in harmony whenever there is a balance between the majority view
holders and the minority view holders. Corporate democracy much like the sovereign
democracy finds its roots in the concept of the majority rule. There should be an endeavor
to strike a balance between the interest of the members of a company for it to function
properly and in pursuance of the same, Chapter XVI of Companies Act, 2013 was enacted,
which attempts to deal with the prevention of oppression and mismanagement in the
company1. The provisions regulating oppression and mismanagement in the companies are
an integral part of the corporate governance and they ensure that the interest of the companies
is protected and that no shareholder or member of the company faces undue bias or
prejudice.2

The terms ‘oppression and ‘mismanagement’ are not clearly defined by the Companies Act,
2013. According to the Black Law Dictionary, the term ‘oppression’ is defined as ‘the act or
an instance of unjustly exercising power’. Mismanagement can be described as conducting
the company affairs in a dishonest, prejudicial, or incompetent manner.

This report will discuss sections 241 to 246 of The Companies Act, 2013, in comparison
with sections 397 and 398 of the Companies Act, 1956, and talk about, the majority rule,
what act constitutes oppression and mismanagement and its prevention, different
interpretations of the sections, and other sections related to this topic from different
legislations, limitation period, all presented with relevant case laws and present case that the
project guide is working on.

1
"Oppression And Mismanagement". S.S Rana & Co, 2021, https://ssrana.in/corporate-laws/company-laws-india/oppression-
and-mismanagement/. Accessed 3 June 2022.
2
"Some Recent Trends In Oppression & Mismanagement Cases Under The Companies Act, 2013 - Shareholders - India".
Mondaq.Com, 2022, https://www.mondaq.com/india/shareholders/1077784/some-recent-trends-in-oppression-mismanagement-
cases-under-the-companies-act-2013. Accessed 3 June 2022.
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 OBJECTIVES AND LIMITATIONS

Objectives:

 Legal Research: Researching through news articles, journals, and other

credible websites to interpret and gain knowledge related to this topic.
 Documentation: to work closely with the advocate and provide assistance to
the advocate and his team in preparing arguments, case notes, etc.
 Learning to work with a team and understand different perspectives involved
and submitting these assignments given by advocates on time.
 Learning to be aware of all the latest law-related topics.

Limitations:
 Limited access to one-one conversations with the project guide, due to a busy
schedule.

PROPOSED METHODOLOGY

The working methodology would be in two methods – doctrinal and empirical

methodology.

 Under Doctrinal Methodology - by referring to various legal books, online

articles, journals,government websites, news articles, legal websites, etc.
 Under Empirical methods - observing the cases (case files and working pattern at
the office), legal analysis of the procedure.

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 SCHEDULE

DATE TASK
27/05/2022 Information about the internship firm/ organization
27/05/2022 Initial information report
04/06/2022 Project Proposal
22/06/2022 Final report Draft

03/07/2022 Final Report

Final Seminar

TIMELINE

WEEK TASK
1 WEEK Researching and Deciding on Topic

2 WEEK Researching on Introduction

3 WEEK Main Body Content

5 WEEK Final Report- Draft

6 WEEK FINAL REPORT SUBMISSION

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 REFERENCES

Internet:
1. www.Manupatra.com
2. www.legalservices.com
3. www.indiakanoon.org
4. www.weatlawindia.com

Bare act
 The Companies Act, 2013

Articles
1. "Oppression And Mismanagement". S.S Rana & Co, 2021, https://ssrana.in/corporate-
laws/company-laws-india/oppression-and-mismanagement/. Accessed 3 June 2022.
2. "Some Recent Trends In Oppression & Mismanagement Cases Under The Companies Act, 2013 -
Shareholders - India". Mondaq.Com, 2022,
https://www.mondaq.com/india/shareholders/1077784/some-recent-trends-in-oppression-
mismanagement-cases-under-the-companies-act-2013. Accessed 3 June 2022.