“Companies stand to be governed according to the wishes of the majority, no matter
how “unfair” the consequences may be to those with minority interests.”
With reference to relevant case-law and statute, critically analyse and evaluate
whether the remedies and recourse available to minority shareholders is
adequate.
Guidance notes
Introduction
Outline the main ways in which minority shareholders can bring claims in relation to
the way in which the company’s affairs have been conducted.
Identify the range of remedies that are available to a minority shareholder,
indicating which remedies are the most important and what you will be focusing on
in your answer.
Decide on the ‘theme’ for your answer: Do you agree that the remedies are
adequate or do you disagree?
Main Body
Use the main body to develop the theme of your answer.
Ensure adequate coverage of the main minority shareholder remedies. However,
bear in mind that you are not required to consider all of the different remedies in
the same depth and you may focus more on some than others.
Use plenty of case law to demonstrate the scope of, and limitations to, the
remedies you discuss. This applies to the statutory remedies, as well as any
common law remedies that you discuss. Any leading House of Lords or Supreme
Court authorities should certainly be considered.
You may need to look at case law on earlier versions of the remedies that may
have preceded the Companies Act 2006, but you should also refer to more recent
case law as well.
Sample Solution
