Shareholder disputes


Many small companies are regarded by the law as 'quasi-partnerships' - in other words, they are, in effect, small partnerships of a limited number of individuals which, although operating as a limited company, are in practical terms run as if they were a partnership between those individuals at the helm.

Commonly, these businesses were originally run as a partnership and later incorporated to become a limited Company.

The significance of the status of a 'quasi-partnership' is that the courts are, generally speaking, more willing to give certain additional rights to minority shareholders in those Companies.

In particular, a minority shareholder in a 'quasi-partnership', who have been involved in the running of the business, can often claim protection from being ousted or excluded from the ongoing management of the business (without any good reason).