Disputes between shareholders of a company and the company itself or its directors can arise in a number of ways. As a shareholder of a company, you may sometimes feel that you have not been treated correctly or that the company directors have acted. The fact that you have little control over the company affairs as a shareholder, may for example mean that you cannot decide whether dividends should be paid, but you will still have the personal right to receive a dividend if one has been declared.
If you are having trouble with the company or the directors of the company you invested in, there are multiple things you can do. At Aitken Whyte we can talk you through your options, the path of action that will assist you in your specific circumstances, and take steps in corporate litigation if necessary to make this come about.
Company shareholder agreements entitle you to certain rights, such as participating in a dividend. This is a very useful right to make your investment in the company worthwhile. If you have not received a dividend when entitled to one, or if you have been precluded from voting at a general meeting, you may be entitled to sue the company you are invested in.
Otherwise, the rights of shareholders to bring legal action for acts of the directors are slightly more limited. If there are any directors disputes about their conduct, or you are a minority shareholder who feels prejudiced and would like to enforce your minority shareholder rights, this may become complicated. Often only minority shareholder oppression as defined in the Corporations Act will allow you to bring an action against the company if you feel prejudiced, as the law firmly separates the ownership of the company by shareholders and the control and decision-making of directors.
If you feel as a shareholder of a company you have been mistreated or oppressed in some way, at Aitken Whyte Lawyers we can provide legal advice as to your options and course of action. We can advise you of what will be involved, your legal entitlements, chances of success, and any remedies available to you.
Aitken Whyte Lawyers
Level 6, 9 Lawson St, Southport
Ph: +617 5596 9099