MINORITY SHAREHOLDER

Law on Remedies for Minority Shareholders

Law on Remedies for Minority Shareholders

Introduction

There are many ways in which the minority shareholders can claim in a relation to the way in which company affairs have been conducted. There are many issues regarding the rights of minority shareholders in the companies which are presented by claiming their due rights in the company affairs. There are several ways in ways the minority shareholders can bring out claim such as Derivative Claims; individual Claims; Unjust Prejudice. These claims can be brought out through analysis of situations in which the minority shareholders can claim in different ways.

There is a wide range of remedies for the minority shareholders regarding the claims which they bring in response of deprivation, in terms of their rights in the company affair. These remedies for the claims of minority shareholders are carried out by the procedures given under companies' act 2006. There are several remedies which can be helpful in sorting out all the issues regarding minority shareholder's rights in the affairs of the company. Some of the important remedies are in order to deal with the issues of minority shareholders are appraisal Rights, court remedies the derivative action, good faith section 263(3) (a) of companies act 2006.

Discussion

Minority shareholders bring out many claims which always require some remedies. There are several remedies in a relation to the claim which are brought out by the minority shareholders in company affairs. To resolve and tackle the claims, there is a huge list of remedies for minority shareholders. These remedies are carried out by two ways; the most common way is remedies through common law and the second way is to make remedies under statutory law. In both of the way, minority shareholders have valuable rights to sue their petition against the unjust behavior of the company and the management. There are certain remedies which makes the process of resolving the issues between minority shareholders and the management very easy going. Some of the important ways of resolving and tackling the claims of minority shareholders are discussed further.

Remedies under common law

Derivative claims

The minority shareholders can be make derivative claims in order to deal with different issues in affairs of company. There are different methods available for minority shareholder who assists them to makes appropriate remedies in terms of resolving the issues.

The minority shareholders receives extensive rights in the new companies act. It gives more relaxation even from the previous companies act of 1973. The new companies act gives more and more freedom to the minority shareholders in order to preserve their rights and avoid their violation. It is very good omen for the minority shareholders as they have been given the rights to claim against the unfair treatment they receive in the organizations.

Judicial intervention

Judicial intervention is one of the most important remedies in relation to the claims bring out by minority shareholders. It is the safer option because it comes directly under the banner of judicial ...