Represented minority shareholders in oppression and mismanagement case, securing NCLT order for buyout at fair valuation and removal of erring directors.
Minority shareholders holding 25% stake in a family-run company approached us after being systematically excluded from management and denied dividends for 5 years. The majority shareholders were diverting company profits through related party transactions.
We filed a petition under Sections 241-242 of Companies Act before NCLT Mumbai, presenting evidence of oppression and mismanagement. Our forensic analysis revealed ₹20 crore in unauthorized related party transactions.
NCLT ordered the majority shareholders to buy out the minority at fair valuation determined by an independent valuer. The valuation came at 40% premium to book value, recognizing the company's true worth. Additionally, two directors were removed for breach of fiduciary duties.
