In what circumstances the managing director of a company or the owner of the company is sued by the employees of his own company?

If an employee does a mistake he is fired or taken into remand by his boss. But if sometime the top management candidate such as a Managing Director who is also the owner of that company does a big mistake of any kind then in what circumstances he loses his power in his own company?

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Originally Posted by Unregistered

If an employee does a mistake he is fired or taken into remand by his boss. But if sometime the top management candidate such as a Managing Director who is also the owner of that company does a big mistake of any kind then in what circumstances he loses his power in his own company?

Dear Aspirant,

See there are sets of rules to be followed by all the citizen of a nation.Violation of any rule is a suable matter in a court of law & on proof in court,punishment is rewarded to the convict.Whoever it may be.If the matter has been sued in court of law & if it is proved in it,there are provision of imposing punishment of different kinds.Some are ordered to be in jail for 6 months,12 months ,& more.If any one's crime is proved in court & punishment is imposed,then in such case the concerned individual has no moral to hold any constitutional post.

But the matter of law is a vast subject & it can be explained by a good lawyer.But one thing is clear that any one can be sued on violation of law.

Of course the employee can not compare with his employer,as he has power to terminate any employee,he can recruit any one eligible candidate for his company/organisation.Only mass of the employees can go against any policy of the company/organisation.If an individual is deprived of his right,he can go to court against the management.

Thanks & good luck.

In big companies normally there is a board of directors or a set of people that are involved in top level management.

There power is decided by the shares of the company they hold.

So it is similar to voting like if the owner makes the mistake than they can vote against him and remove him from the position.

Thus it all depends on the hierarchy and the management process that is followed by a company.

If there is no such thing than no body can remove the owner or take the power from the owner as it is his own property.

If the owner has done a mistake that comes under crime or is against the law than he has to face the charges and thus can be treated as per law.