When the company violates their responsibility, exploits their position, and treats the shareholder wrongly, the shareholders can engage an experienced commercial lawyer and use the law to protect their rights. The act that caters to their rights is called the Corporations Act 2001 part 2F 1.
In this, under the section of 234, the outline s232 states that the candidates including in this act are; the company’s shareholders, any individual who was dismissed from the list by selective reduction, any other relevant person declared by the investment commission, any individual who has a share in the company either by will or law, and any person who is no longer the shareholder. Furthermore, the claim is based on the time when they were eliminated.
Shareholders may face oppression in the following conditions:
- Improperly issued shares
- Unprofessional elimination from the management
- Prohibited to access information
- Accused of wasting company funds
- Harsh behaviour of others during the board meeting
- Paying huge amounts of compensation to an associate or controller
- Diversion to another entity of a business
- Unable to take legal actions against any behaviour
Requirement for Resolution
The applicants are provided with help only when the court believes that the conduct of affairs and dismissal done on behalf of the company, or any decision or prospective decision of the shareholders was oppressive to a particular shareholder or was against the interest of a group of shareholders. These affairs may be associated with the company, the shareholders; major or minor, and the directors.