Minority Protection

Minority Protection

1. Sell shares

2. Raise an action

   • Foss v Harbottle
     • Majority can do what it likes
       • Exceptions
         • Cook v Deeks
           • fraud
           • company to give up lucrative contract
   • s994
     • Noble and Sons
       • need to attend boad meeting to protest
     • O'Donnell v Shanahan
       • diverting company business to themselves
     • Saul Harrison & Sons
       • Widow took non-voting shares
     • s996
       • Court can apply what remedey it sees fit
         • RH Harmer
           • 'President for Life' case
     • O'Neil v Phillips
       • Promised shares but no contract
     • Unfair predjudice
   • Derivative Claim
     • On behalf of the company
       • best interests
     • s265
     • Huges v Weiss
       • missapplying company money

3. BIS Investigations

4. 'Just and Equitable' winding up

   • Principle objective unachievable
     • German Date Coffee
       • outdated
   • Deadlock in management
     • Yenidje Tobacco
       • Could not be in the same room
   • agreement dishonoured (lawfully)
     • Ebrahimi v Westbourne Galleries
       • quasi-partnership
   • Illegal purpose
     • Thomas Brinsmead
   • Failure to disclose accounts
     • Loch v Blackwood
   • IA s122(g)

5. Judicial factor appointed

   • Weir v Rees