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Oppression and mismanagment

Prashant (Lawyer) (44 Points)

12 June 2008

Can someone please answer the following questions for me:

Whether it is obligatory/mandatory on the Company to disclose its business plans to its shareholders?
If any proposals are received from the shareholders proposing the names for appointment of the Director, whether the management can outrightly reject such proposals? Or whether it has to be put to the Board and Board can reject such proposal?

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Mahesh Paryani (Chartered Accountant) (365 Points)
Replied 12 June 2008

it is not obligatory to disclose the businesses plan to share holders as directors are entrusted with the management objective

share holders are given only 36 rights and that does not include disclosure however if the business plan is out of the scope of the memorandum it would automatically be void and directors would be liable for that so in this way share holders are protected

the directors cannot reject an application of member of being appointed as director as directors are appointed in general meeting (general objects)