What is the primary aim of striking a balance between majority rule and minority protection in a company?

To ensure that the majority shareholders always have the upper hand in decision-making.

To protect the interests of the majority shareholders against any violations.

To prevent minority shareholders from having any say in company affairs.

To ensure fair treatment of both majority and minority shareholders for the smooth functioning of the company.

In the context of company law, what is the justification behind the principle laid down in Foss v. Harbottle?

To ensure that the majority shareholders can always override the interests of minority shareholders.

To encourage individual shareholders to sue directors for any wrongdoings in the company.

To preserve the right of the majority to decide how the company's affairs are conducted.

To allow minority shareholders to take control of the company's management.

What is the purpose of Section 163 of the Companies Act, 2013?

To regulate the transfer of shares between shareholders.

To grant minority shareholders the right to take legal action against the majority.

To allow shareholders to request a company's directors to convene an extraordinary general meeting.

To enable companies to adopt the principle of proportional representation.

What is the purpose of granting shareholders the right to transfer shares freely?

To allow majority shareholders to gain more control over the company.

To facilitate the consolidation of shares by minority shareholders.

To protect the interests of minority shareholders by giving them control over their shares.

To ensure that all shareholders can participate equally in company decisions.

Under what circumstances can an individual shareholder sue if an act requires a special majority but is passed by a simple majority?

If the act is in line with the company's memorandum and articles of association.

If the act is deemed fraudulent by the majority shareholders.

If the act is an ultra vires transaction.

If the act does not require a special majority and is passed by a simple majority.

When can minority shareholders bring action against the company for preventing oppression and mismanagement?

When they disagree with the decisions made by the majority shareholders.

When they hold at least 25% of the company's total shares.

When the majority shareholders act in an unfair or fraudulent manner against the interests of the minority.

When they can prove that the company is incurring losses due to mismanagement.

What is the significance of adopting the principle of proportional representation in a company?

It ensures that the company's directors are elected solely by the majority shareholders.

It gives minority shareholders a stronger voice in the company's decision-making process.

It restricts the voting rights of minority shareholders.

It allows the company's management to control the shareholders' voting rights.

What is the purpose of the provision that allows shareholders to request the convening of an extraordinary general meeting?

To allow shareholders to voice their grievances against the company's management.

To give shareholders the power to replace the company's board of directors.

To ensure that minority shareholders have the right to attend all general meetings.

To enable shareholders to take control of the company's day-to-day operations.

Under what circumstances can individual shareholders bring action against the company for breach of duty by directors and majority shareholders?

If the breach of duty is in line with the company's articles of association.

If the breach of duty leads to the company incurring significant losses.

If the breach of duty is done with the consent of the majority shareholders.

If the breach of duty harms the company due to mismanagement.

What role does the principle of non-interference play in the context of company law?

It ensures that minority shareholders have the final say in company decisions.

It allows shareholders to challenge any decision made by the majority.

It prevents the court from interfering in the internal management of a company.

It requires shareholders to obtain the consent of the majority before taking legal action.

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