A minority shareholder who believes they are being oppressed can apply to the High Court under Section 216 of the Companies Act for relief, which may include a buy-out order, an order regulating the company's future conduct, or an order to wind up the company. Before going to court, it is usually worth attempting negotiation or mediation, since litigation between shareholders can be costly and damage the business permanently. Early legal advice helps clarify whether the conduct in question actually meets the legal threshold for oppression.
Quick Question
What Can a Minority Shareholder Do if They Are Being Oppressed?
The short answer
Quick answer
A minority shareholder who believes they are being oppressed can apply to the High Court under Section 216 of the Companies Act for relief, which may include a buy-out order, an order regulating the company's future conduct, or an order to wind up the company.
General information only. This answer does not constitute legal advice. The appropriate response depends on the facts and circumstances of each matter.