Minority Shareholders' Rights

This is a comprehensive guide to the law and practice relating to minority shareholders. It covers the rights of shareholders and the protection available to them, the abuse of these rights and the action and remedies that can be sought for that abuse. Up until 1948 minority shareholders' rights were, in the absence of express agreement, limited. As a result of section 75 of the "Companies Act' 1980, now section 459 of the "Companies Act" 1985, and fresh judicial interpretation of the Rule in "Foss v. Harbottle", this area ... Read More

This is a comprehensive guide to the law and practice relating to minority shareholders. It covers the rights of shareholders and the protection available to them, the abuse of these rights and the action and remedies that can be sought for that abuse. Up until 1948 minority shareholders' rights were, in the absence of express agreement, limited. As a result of section 75 of the "Companies Act' 1980, now section 459 of the "Companies Act" 1985, and fresh judicial interpretation of the Rule in "Foss v. Harbottle", this area of law has developed rapidly. The pendulum swung firmly in favour of the protection of the minority shareholder. Recent judicial decisions, however, have sought to counter the extent of this protection by applying a test of "fairness" in each instance. Minority Shareholders' Rights traces these developments and provides a detailed commentary on their effects on company law. Commencing with an examination of the inherent rights of minority shareholders and an appraisal of the Rule in "Foss v. Harbottle" the text develops to deal with the statutory remedies of winding-up on the just and equitable ground and unfair prejudice. Later chapters focus on the personal and miscellaneous rights of shareholders and detail the ambit of each individual right. Read Less