“Majority Rule” as Applied in the Management of a Company :

The Companies Act, 1956, together with the protection granted to minority under the Common Law, attempts to maintain a balance between the rights of majority and the minority shareholders by admitting in the rule of the majority but limiting it at the same time by a number of well-defined minority rights, and thus protecting the minority shareholders.

Minority shareholders are protected by:

1. the Common Law; and

2. the provisions of the Companies Act, 1956.