There are several instances in which the concept of majority rule with respect to minority rights has played a significant factor in american government and policy. Before the russian revolution, the citizens of the united states were. Majority powers and minority rights government information. Majority rule, minority rights on the surface, the principles of majority rule and the protection of individual and minority rights would seem contradictory. The object of sections 397398 is to provide protection to the minority shareholders in a company against the oppressive and the acts of mismanagement by the majority. How can majority democratic rule be reconciled with minority rights when the judiciary acts to safeguard the rule of law. Madisonian and millian principles safeguard individual and political minorities. The 1992 constitution of the czech republic, for example, recognizes the concepts of majority rule and minority rights. Although we use this strategy in daily life as in the. One of the most interesting thing about incorporation of a company, is the legal personality clothing that incorporation clothes an organization with. A reflective analysis of the nigerian corporate practice.
Nov 14, 2017 majority rule has long been a central tenet of company law. Article vi says, political decisions shall stem from the will of the majority, expressed by means of a free vote. Majority rule and minority rights essay 46 words cram. However these principles are the two pillars that forge the very core of genuine democracy us embassy, 2007. Meaning that the proper claimantplaintiff is the company3. Pdf the principle of majority rule and minority protection.
Find under this subsection information about minority protection in relation to shares and membership of a company. Minority rights to start off, what exactly are majority rule and minority rights. It is through these rights that the minority stays protected. Majority rule and minority rights the very foundation of democracy is held by two pillars, the principles of majority rule and protection of the rights of individual and minority.
Jun 19, 2018 this, however, may lead to a possibility that the members having majority vote may tend to be oppressive towards the minority shareholders misusing their majority strength. However, the idea of rights of the minority is that minorities have rights that cannot be taken. However, whether it is the majority or minority bringing the action the proper claimant is still the company. If the minority could not enforce the companys rights there would be a wrong without a remedy. The concept of majority rule and minority rule is provided for in the first amendment of the united states constitution. This, however, may lead to a possibility that the members having majority vote may tend to be oppressive towards the minority shareholders misusing their majority strength. Majority rule presented a conundrum to the founders of america precisely because although majority rule was needed in order for the government to function and the principle of minority rule interfered with democracy, the majority in power could oppress a minority as easily as a king or dictator could. Simply put, it means that the majority will make decisions, but the minority s rights are protected the majority s beliefs cannot be used to abuse the minority. Jun 11, 2018 majority rule presented a conundrum to the founders of america precisely because although majority rule was needed in order for the government to function and the principle of minority rule interfered with democracy, the majority in power could oppress a minority as easily as a king or dictator could. The designations employed and the presentation of the material in this publication do not imply. Sir richard baggallay, in northwest transportation co ltd and beatty v beatty 1887 outlined the way in which minority shareholders rights relate to the obligation to be bound by the majority. When the majority decides to oppress, drive out, or exterminate a minority group, often the minority has no option but to appeal for help from outside the country. Majority rule presented a conundrum to the founders of america precisely because although majority rule was needed in order for the government to function and the principle of minority rule interfered with democracy, the majority in power could oppress a minority as easily as a.
It is the binary decision rule used most often in influential decisionmaking bodies, including all the legislatures of democratic nations. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Minority rights, majority rule seeks to explain why majority parties have consistently been so powerful in the u. The majority s decisions must heed the protection of the minorities. It is the binary decision rule used most often in influential decisionmaking bodies including all the legislatures of democratic nations. Internal rules usually provided for majority rule, and the rule in foss v harbottle 1843 deliberately subjected minority shareholders to the rule of the majority shareholder. Minority protection, rights, and supermajoritarianism the only practical decision rule for legislatures that fully respects political equality is majority rule, as argued in the previous chapter. Supermajoritarian rules, such as the threefifths supermajority rule required to end a filibuster in the united states senate, have been proposed as preventative measures of this problem. No majority, no matter how large, should take away the basic rights and freedoms of a minority group or individual. Jan 18, 2018 simply put, it means that the majority will make decisions, but the minoritys rights are protected the majoritys beliefs cannot be used to abuse the minority. It is also founded on the protection of the rights of minority groups to political participation, social inclusion and economic resources. Majority rule with minority rights means that even though one group may win a vote, the minority group will still have rights. Madison relies on majority rule to protect against minority tyranny. Majority rule and minority protection in private corporations.
Majority rule is applied in making decisions on public issues as well as for organizing the government. The right to free speech and the right to assemble. There are several instances in which the concept of majority rule with respect to minority rights has played a significant factor in. Meaning that the proper claimantplaintiff is the company. Minority rights are the normal individual rights as applied to members of racial, ethnic, class, religious, linguistic or gender and sexual minorities. Minoritarianism or minorityism is a neologism for a political structure or process in which a minority segment of a population has a certain degree of primacy in that entitys decision making. There were other incidents that have also displayed these tensions of government choosing between majority rule and minority rights. Minority rights are the collective rights given to minority groups. Because a majority can win a vote under majority rule, it has been commonly argued that majority rule can lead to a tyranny of the majority. However, there are other values that we need to take into account besides political. Introduction in corporate world, all democratic decisions and management of a company are made with the majority rule which is deemed to be fair and justified. The majoritys decisions must heed the protection of the minorities. Monday, january 19, 2014 definition of concept definition of concept minority does not get ignored and is able to get their complaints and concerns heard the minority always has the opportunity to become the majority all.
Doc majority rule and minority protection david ejesu. The concept of majority rule is that a majority should make political decisions for the whole group. And as the popular notion of democracy being the government of the people by the people and for the people. This document is highly rated by b com students and has been viewed 14432 times. Strom 1990 there was, for instance, the red scare of 1919. In some places, discrimination against minorities is so severe that jobs and places in educational institutions have to be set aside for them, or they woul. Section 299 cama provides that only the company can sue to remedy a wrong done to it and only the company can ratify an irregular conduct. The first amendment gives all citizens basic rights. The amendment reveals that the minority have certain rights which protect them against unfair treatment which might be as a result of decisions made by the majority. Majority control and minority protection oxford handbooks. House of representatives while minorities often prevail in the senate. Majority rule can often lead to tyranny because of the pursuit of the majorities interests. The concept of the majority rule with respect to minority. Pdf majority rule and minority protection in private.
The principle of majority rule and minority protection. This chapter examines legal issues concerning majority control and minority protection in firms with concentrated ownership governance structures, with particular emphasis on the tradeoff between the goals of protecting minority shareholders and allowing controllers to pursue their vision and how corporate law should balance these conflicting goals. This provision is a codification of the rule in foss v harbottle. The power to bring an action on behalf of the company is bestowed upon the members in general meeting and is obviously unavailable where dominant shareholders act against the wishes of minority shareholders and force proposals through. The majoritys decisions must heed the protection of. Rights of minority shareholders under companies act, 20. This thesis examines, in comparative terms, canadian and nigerian laws relating to the concept of corporate majority rule and minority protection from majority opportunism and oppression in private corporations. How are majority rule and minority rights related answers. Mar 02, 2018 minority rights are generally the same as anybody elses, but there are certain exceptions. Article pdf available january 2016 with 2,529 reads how we measure reads. Majority rule, minority rights by angie murthy on prezi. The rule concerning protection of minority shareholders interest has evolved through a long process since the majority rule was laid down in foss v. Majority rules and minority rights seems to be contradictory with each other, the dictum of majority rule and the protection of individual or the minority may not coincide with general rules.
Majority rule definition in the cambridge english dictionary. Article 6 says, political decisions shall stem from the will of the majority, expressed by means of a free vote. Majority rule is a way of organizing government and making public decisions. Why is it important to balance majority rule with minority rights. Rahmani, ataollah 2007 majority rule and minority shareholder. Minoritarianism may be contrasted with majoritarianism, but with legislative power being held or controlled by a minority group rather than the majority. Majority rule, minority rights principles of democracy. Binder charts the history of minority rights in both chambers and explains how partisan battlesfought under rules inherited from the pasthave shaped. Well, majority rule is a way of organizing government where citizens freely make political decisions through voting for representatives. The liberal democratic model on which most african states were founded at independence from colonial rule, and to which they continue to aspire, is founded on majority rule. Majority rule with respect for minority rights essay wow.
Hayley bell short essay feb 02, 2019 majority rule versus. The majority of these remedies are firmly rooted in the common law but recently, these rules have been codified under the companies act 2006. Minority rights may also apply simply to individual rights of anyone who is not part of a particular majority civil rights movements often seek to ensure that individual rights are. It does not mean that the majority has the right to practise oppression. In this article, anchal gandhi pursuing diploma in entrepreneurship administration and business laws from nujs, kolkata, elaborates on rights of minority shareholders under companies act, 20. Apr 10, 2012 the object of sections 397398 is to provide protection to the minority shareholders in a company against the oppressive and the acts of mismanagement by the majority. Majority rule has long been a central tenet of company law. Minority protection, rights, and supermajoritarianism. Bis minority investigations shares and membership of a company. Minority protection united kingdom encyclopedia of law. No majority, no matter how large, should take away the basic rights and freedoms of a minority. From the rule that minority or a single shareholder may not seek any relief for a right violation, we have seen the various exceptions to the majority rule that have. Most sovereign nations have imbibed democratic principles in electing the leaders of their various nations.
Majority rule but minority protection majority rule. Political governance and minority rights download ebook. The right to free speech and the right to assemble allow the minority to be heard, which gives them the opportunity to grow and become the majority. Pdf the company act i960 merely incorporated the common law position with its shortcomings and that unfortunately form the foundation. Majority rule and derivative claims a the proper claimant rule. Section 299 cama provides that only the company can sue to remedy a wrong done to it1 and only the company can ratify an irregular conduct2. As the existence of the bill of rights illustrates, the majority has voluntarily agreed to limit majority rule in certain areas because some rights are so cherished that. Majority rule definition of majority rule by merriamwebster. Scribd is the worlds largest social reading and publishing site. Dahl argues that in cases where positive government action is required to protect rights, restraining majority rule with checks and balances undermines this protection. Because of this reason, it has been said that the protection of the minority shareholders within the domain of corporate activity constitutes one of the most difficult. Therefore the majority who rule the company are not going to sue themselves. For the purpose of this project, the protection afforded to minority shareholders will be critically evaluated and its effectiveness will be highlighted to portray the usefulness of the available remedies.
The courts were compelled to recognise limits to the rule in foss v harbottle 1843. In a choice or vote between two or more options, the option that wins over 50% of the vote wins. Majority rule is essential in a democracy and having limits does not contradict the majoritys power. Majority rule and minority rights free essay samples. Majority rule and the rule in foss v harbottle derivative claims company law. Well, majority rule is a way of organizing government where citizens freely make political decisions through voting for. Majority rule is essential in a democracy and having limits does not contradict the majority s power. The key shareholder remedies of derivative actions and oppression are comparatively discussed, with highlights of the similarities and differences in both remedies under canadian and. Majority rule definition is a political principle providing that a majority usually constituted by fifty percent plus one of an organized group will have the power to make decisions binding upon the whole. Pdf tn africa generally and nigeria in particular, it is a com111011 practice that communities and or families. In fact, however, these principles are twin pillars holding up the very foundation of what we mean by democratic government. I personally feel that an application under section 397398 of the companies act, 1956 is a serious thing exposing serious misunderstandings between majority and minority group.
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