Minority Shareholders Disputes
Disputes between shareholders may result in an irretrievable breakdown in mutual trust and confidence or a deadlock in the management of the company. In such cases, relief in accordance to minority shareholders disputes may be sought under the Corporations Act 2001 (Cth).
If you are involved in, or wish to obtain legal advice on any aspects of shareholder disputes, then Gibbs Wright Lawyers is here to fight for you.
Minority shareholder claims
The Doctrine of Majority Rules is a fundamental concept in the corporate landscape, but it contains the inherent risk of abuse to minority shareholders. The Corporations Act 2001 (Cth) provides some protection for minority shareholders in a range of circumstances.
Depending on the circumstances of each case, the below listed may also constitute unfair prejudicial conduct and oppression to which a minority shareholder may have a claim:
- Misappropriation of funds;
- Improper diversion or exclusion from participation in company management;
- Improper action to remove or appoint directors;
- Unfairly restricting dividends;
- Abuse of voting power;
- Denial of access to company books and records;
- Oppressive conduct of board meetings;
- Use of company funds to defend oppression proceedings;
- And more.