Minority Shareholder Rights

Question 1

What is the oppression remedy

Answer 1

A shareholder can ask the court to intervene if they’ve been treated unfairly, prejudicially, or oppressively by the company or majority shareholders.

Question 2

What is a derivative action

Answer 2

It allows a shareholder to sue on behalf of the company when the directors fail to act on wrongdoing.

Question 3

What are buy-out rights

Answer 3

If a shareholder disagrees with a major decision, they can require the company to buy their shares at fair value.

Question 4

What are pre-emptive rights

Answer 4

These give existing shareholders the first right to buy new shares before they are offered to outsiders.

Question 5

What are shareholder access rights (s216)?

Answer 5

Shareholders can request access to company records, including financials and meeting minutes.

Question 6

What voting rights do shareholders have?

Answer 6

Shareholders vote on key issues such as appointing directors, adopting/revising the constitution, and approving major transactions (s129).