R. SAI BHARATHI vs J. JAYALALITHA .

The Supreme Court addressed the governance and operational framework of the Tamil Nadu Small Industries Corporation Limited (TANSI), established under the Companies Act, 1956. The Court emphasized that the Government of Tamil Nadu retains significant control over TANSI, including the appointment and removal of directors and the necessity for government approval for major decisions, as outlined in Articles 72 and 79 of the Articles of Association. The Court held that the provisions governing TANSI are valid and enforceable, affirming the government's authority to manage the corporation's affairs effectively, particularly in light of the financial losses incurred by certain industrial units.