Minority shareholder oppression occurs when majority shareholders or directors run a company in a way that unfairly disregards or harms the interests of minority shareholders, such as excluding them from decisions or diverting company benefits to the majority. Under Section 216 of the Companies Act 1967, minority shareholders who can show oppressive or unfairly prejudicial conduct may apply to the court for relief. Remedies can include an order for the majority to buy out the minority shareholder's shares.
Quick Question
What Is Minority Shareholder Oppression?
The short answer
Quick answer
Minority shareholder oppression occurs when majority shareholders or directors run a company in a way that unfairly disregards or harms the interests of minority shareholders, such as excluding them from decisions or diverting company benefits to the majority.
General information only. This answer does not constitute legal advice. The appropriate response depends on the facts and circumstances of each matter.