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Swami Sadashiva Brahmendra Sar (Nil)     29 June 2009

State as a shareholder

Dear friends,

In LIC v. Escorts Ltd. AIR 1986 SC 1370 a constitution bench of the supreme court,  held that the shareholders are not bound to disclose reasons for the resolutions which they propose to move at the extraordinary general meeting on requisition for removal of a Director . Even if shareholder is  State or its instrumentality, non furnishing of such reasons would not attract Art. 14.

Now, whether State as a shareholder can claim fundamental rights?



 1 Replies

Ramakrishnan.V (Lawyer)     02 July 2009

Honrestly no because the constitutiona law is a written document that is made between the goverened and the governing boy which is understandable by the social contract theroy.  Therefore the governing body would never be able to ask for the use of fundamental right.  Further, if the corporate veil is lifted then the state goes off and the real personal namely the citizens can ask for it as stated in Bank Nationalisation case, namely R.C.Cooper's case

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