"with a company there are many areas of potential disagreement among members. as the range of potential disagreement is very board ,so also is the for exploitation and abuse of minority shareholders...

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Critical analysis on statutory position
and remedies available to minority
shareholders
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Table of Contents

Introduction ................................................................................................................................ 3
Majority shareholders ................................................................................................................ 3
Minority shareholders ................................................................................................................ 4
Problems faced by minority shareholders .................................................................................. 4
Statutory remedies ..................................................................................................................... 5
Different statutory rights ........................................................................................................ 5
Unfair Prejudice ..................................................................................................................... 6
Derivative Claims .................................................................................................................. 7
Personal Claims ..................................................................................................................... 7
“Just and Equitable” Winding-Up ......................................................................................... 8
Dispute resolution process ......................................................................................................... 8
Facilitative processes ............................................................................................................. 8
Advisory processes ................................................................................................................ 9
Determinative processes ........................................................................................................ 9
Major findings ............................................................................................................................ 9
Conclusion ............................................................................................................................... 10
Bibliography ............................................................................................................................ 11
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Introduction
Shareholders are the one who participate direct or indirectly in the success of the
organization. Shareholders are the owners of the company and also share organizational
profits. Major shareholders of any organization can be investors, employees, customers,
government, social environment etc. They are the one who buy company stock and enjoy a
number of rights in the company. However, responsibilities and power of different
shareholders vary in the decision making process. Many times it has been noticed that
majority shareholders take actions which may be unfair for the minority shareholders.
However, it is very crucial to understand that all the shareholders are important for the
success of the organization.
This report aims at critically analyzing the position of all the shareholders including majority
and minority shareholders. This report includes information about the major problems faced
by the minority shareholders, the reasons for the same. Finally, this paper focuses on
understanding the various remedies that are available for minority shareholders if majority
shareholders take any unfair decision. This report describes various strategies with example
and case laws. This report will be helpful for the shareholders in understanding various legal
remedies available to them to protect their position in the organization.
Majority shareholders
Majority shareholders are the one who owns majority of the stocks in the company, generally
more than fifty percent. They have the majority control and power to take decision in the
company. In general instance majority shareholder is the owner of the company. However,
the concept of majority shareholder is more prominent in private organizations and less in
public (Dignam & Lowry, 2008). They have extra power to do what other shareholders can’t
do; they have higher decision making powers. They have significant influence on the
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operational activities of the company with higher responsibilities. They managed the
company and might differ in their approach than minority shareholders.
Minority shareholders
Shareholders who hols stock in the company but less than fifty one percent is known as
minority shareholders, they do not have the voting rights in the company. They have lesser
authority and responsibility in comparison to majority shareholders. The power of
shareholders in the company varies significantly...