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Minority Shareholder Oppression

If you can relate to these cases below, Contact Us Immediately: Shifting of a corporate opportunity by the majority shareholders to themselves (Cook v Deeks). Directors issuing shares for improper purposes (Wallington v Kokotovich Constructions Pty Ltd). Unfair exclusion of a director for an improper purpose (John J Starr (Real Estate) Pty Ltd v Robert R Andrew (Australasia) Pty Ltd). Low dividend payments due to excessive remigration (Sanford v Sanford Courier Service Pty Ltd). Failure to give proper notice of meeting (Foody v Horewood); Shum Yip Properties Development Ltd v Chatsword Investment & Development Co Pty Ltd (2002). Wrongful exclusion from participation in management High Court of Australia case Campbell v Backoffice Investments Pty Ltd [2009] HCA 25); Fexuto Pty Ltd v Bosjnak Holdings Pty Ltd 2001. Controlling members gain an unfair advantage by oppressive (Re Overton Holdings Pty Ltd (1984)). Making uncommercial loans to a company without consent from the minority shareholders (Re George Rayment; Slater v Gilberstson (2000). Breakdown in mutual trust and confidence (Kotokovich Constructions Pty Ltd v Wallington (1995)) – dilution of shares rendering the shares worthless.
Deadlock with directors without oppression (irreconcilable differences) (Gregor v British – Israil World Federation (NSW) 2002); Fraud and misconduct by majority directors  (Loch v Blackwood Ltd [1924] AC 783). Need a court order to restrain the Majority Shareholder and Director from passing a resolution to remove minority directors. Eden Resort Hotel Pty Limited [2013] NSWSC 493 (24 April 2013) Some United States Courts have held that majority directors/shareholders have used the winding-up laws in breach of their fiduciary duty owe to the minority shareholders in circumstances where both the majority directors/shareholders and the liquidator planned the liquidation in order to avoid compensation being paid to the minority. Failure of the common aim of the company. Seek Legal Advice quickly as these types of disputes can cripple the company.
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