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LawBytes · Legal Guides

Oppression and Mismanagement Under the Companies Act

What the Companies Act 2017 actually means by oppression and mismanagement, and the remedy available to an affected shareholder.

The Companies Act 2017 provides a specific remedy for shareholders affected by oppression or mismanagement, distinct from an ordinary claim for breach of contract or fiduciary duty.

What counts as oppression

Oppression generally involves conduct by those in control of the company that is burdensome, harsh or wrongful toward minority shareholders — for example, systematically excluding a shareholder from information or decisions they are entitled to.

What counts as mismanagement

Mismanagement covers conduct prejudicial to the company’s interests or contrary to the interests of its members as a whole, going beyond ordinary business misjudgement into conduct that genuinely harms the company.

The remedy sought

Relief can include regulating the company’s affairs going forward, or in appropriate circumstances, an order for the purchase of the affected shareholder’s stake, rather than simply awarding damages.

What to do next

Document the specific conduct alleged — decisions taken, information withheld, resolutions passed without proper notice — since this is what a claim under this provision is actually built on.

Official source

This links to the relevant authority’s own website for reference. It is not affiliated with WaleedMJ Law and we are not responsible for its content.

Written by

Waleed Mansoor

Advocate High Court · Founding Principal

LL.B., University of the Punjab. Diploma in Tax and Forensic Laws. Founder of LawBytes, and formerly Director of the Legal Leadership Forum. Practises across litigation, corporate, regulatory and immigration matters.

More about the practice

This is general legal information, not advice. It describes how a process generally works and does not address the facts of any particular matter. Reading it does not create a lawyer–client relationship, and outcomes depend on the specific facts of each case.

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