Introduction The Delhi High Court in its recent judgement, ( Rajeev Saumitra vs. Neetu Singh & Ors) , examined the scope of Section 166 of the Companies Act, 2013 ( Directors’ Duties ), expanded the current understanding of shareholders’ obligations and opened the doors to derivative suits, hitherto largely unknown to Indian shareholders. Facts n The plaintiff and the defendant are shareholders of Paramount Coaching Centre Private Limited ( Paramount ), each holding 50% of the share capital of Paramount. They are also directors of Paramount. n The defendant has incorporated two other companies that carry out businesses competing with Paramount, in relation to which she solicited the employees and existing clientele of Paramount. In order to promote the activities of the companies incorporated by her, the defendant also made undu...