The Viewpoint – Arbitrability of Oppression/Mismanagement Disputes

The Viewpoint – Arbitrability of Oppression/Mismanagement Disputes

Modern commercial transactions often lead to complex legal questions. Usually, the shareholders of a company enter into a shareholders agreement setting out in detail the rights and obligations. These agreements, more often than not, contain an arbitration clause. In view of the judgment of V B Rangaraj v. V B Gopalakrishnan,[1] the company concerned is also made a party to such an agreement and the relevant provisions of the shareholders agreement are reflected in the Articles of Association. This has led to a debate as to whether such a dispute between the shareholders regarding to oppression and mismanagement ought to be determined by the Company Law Board (“CLB”) or an arbitral tribunal.

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