Minority Shareholder Rights: Legal Remedies for Oppression
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Minority Shareholder Protection and Remedies
Every company has majority and minority shareholders. Very often, the majority shareholders will possess greater authority, leaving the minority with little choice but to acquiesce. In practice, if a minority shareholder is oppressed, several legal remedies are available. Section 994 addresses personal claims, while Section 260 pertains to corporate claims. Section 122(1)(g) is considered a last resort option. There are significant differences between these remedies.
Section 994 and 996: Unfair Prejudice Claims
Section 994(1) of the Companies Act 2006 is crucial in defining unfair prejudice. A key case illustrating this is O'Neill v Phillips.
Case Study: O'Neill v Phillips
- Facts: Mr. Phillips owned Pectel