Shareholder's right

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 can a shareholder ask for a details of expenses incurred in past. or has shareholder any right to ask for details of expenses.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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13 July 2016 Yes

Shareholder can ask for the details of expenses incurred by the company

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 can you please refer me the provision of the same.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Yes, a shareholder does have certain rights to information, but those rights are limited and qualified under the Companies Act, 2013. Here's a detailed explanation with relevant legal provisions:

✅ Can a shareholder ask for details of expenses?
Short Answer:

Yes, but not unrestricted access.

Shareholders can access certain financial and statutory records, but not detailed expense-level data, unless they are also a director or have been granted such access by the company or court.

📜 Relevant Provisions from Companies Act, 2013
1. Section 136 – Right to Financial Statements
Every shareholder (member) is entitled to receive financial statements (including profit and loss account, balance sheet, cash flow statement, and auditor’s report).

These statements summarize expenses, but not individual invoices or granular details.

Must be sent 21 days before the AGM.

2. Section 171 – Members’ Right to Inspect Minutes
Members can inspect the minutes of general meetings.

However, this does not extend to board meeting minutes or expense records.

3. Section 149–172 (Directors’ duties and members' rights)
Directors have broader access.

Shareholders can raise queries at the AGM, and the board is expected to respond transparently — but only general details are usually disclosed.

4. Right under Common Law & Articles of Association (AoA)
In some cases, if a shareholder can demonstrate that accessing expense details is necessary to protect their interest, they may:

Approach the NCLT under Section 241–242 (if oppression/mismanagement is suspected).

Seek an order to inspect books of account under Section 128(3) — but only if authorized by the board or by court.

🔒 What a Shareholder Cannot Do Directly:
Inspect day-to-day expenses or internal vouchers.

Access board minutes, unless ordered by the court.

Demand operational-level documents without a legal basis.

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