Shareholder disputes

Court Orders protecting shareholders

Any complaint alleging a minority shareholder has been 'unfairly prejudiced' is a law suit brought against the other shareholders in their personal capacity.

Where 'unfair prejudice' can be established, the Companies Act 2006 provides that the court 'may make such order as it thinks fit'.

Although this means the court has very wide powers to make almost any order, by far the most common order made by the court is an order that one or more of the shareholders should purchase the shareholding of the other shareholder(s).Normally, the court will order the majority shareholders must purchase the shareholding of the minority shareholder(s) at a 'fair value' [see the 'Valuing your shareholding' section].