Home › CS Executive › jurisprudence › Constitution of India › In *R.C. Cooper v. Union of India* (also known a…
In *R.C. Cooper v. Union of India* (also known as the Bank Nationalisation case), the Supreme Court ruled on the test for determining whether a shareholder's right is impaired. What was the holding?
Answer & Solution
Correct answer: D.
1. In **R.C. Cooper v. Union of India, AIR 1970 SC 564** (the Bank Nationalisation case), the Supreme Court significantly modified its earlier view that a company is a distinct entity from its shareholders so far as fundamental rights are concerned.
2. The Court held that the **test for determining whether the shareholder's right is impaired is not formal but essentially qualitative**.
3. Where the State action impairs the rights of the shareholders as well as of the company, the Court will not deny itself jurisdiction to grant relief merely because the company has a separate legal personality.
4. *Bennett Coleman & Co.* (AIR 1973 SC 106) extended this — the shareholders' rights are equally affected if the rights of the company are affected.
_Source: ICSI CS Executive — Lesson 2, 'Corporations' under Article 19 discussion, p. 41._
Related questions
In *Skill Lotto Solutions Pvt. Ltd. v. Union of India & Ors.*, the Supreme Court considereIn the Indian system of subordinate legislation, which form is correctly paired with the bWhy does the Supreme Court's writ jurisdiction under Article 32 cover the entire territoryA writ may be sought from a High Court under Article 226 for which of the following purposIn *Kameshwar Singh v. State of Bihar*, the Bihar Land Reforms Act, 1950 was struck down aThe doctrine of 'harmonious construction' in interpreting the legislative lists of the SevWhich Article of the Constitution requires that a Bill of the kind described in Article 30Article 253 of the Constitution enables Parliament to make law on any subject in any list.