Question: A minority shareholder has no right to relief under s.459 Companies Act 1985 where her only complaint is that her relationship with her fellow shareholders has irretrievably broken down. This absence of relief is neither fair, nor economically desirable. Discuss.
Answer: s. 459 Companies Act 1985 allows a minority shareholder to apply for court-sanctioned relief where her interests as a member of a company have been unfairly prejudiced. Its development has provided an alternative to winding up a company, which is unfair to the petitioner if company assets are minimal . Whilst the court has an unfettered discretion in awarding such order as it thinks fit , it usually provides that the majority must purchase the shares of the minority at a pro-rata rate ; thus, the offer to purchase the shares at market value negates the unfairness....(short extract)
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- Subject: Law
- Course: Commercial Law
- Level: Degree
- Year: 2nd/3rd
- Mark: 74%
- Words: 2187
- Date submitted: January 29, 2009
- Date written: March, 2004
- References: Yes
- Document type: Essay*
- Essay ID: 430
