Case Study

Sometimes the tyranny of the majority in a company damages the interests of other shareholders. Shareholders have a number of options to choose from when they have experienced oppressive or unfair conduct by the company or its directors.

Part 16 Division 1 Section 176 to 179 of Companies Act 2015 covers members right and remedies on oppressive conduct of affairs.

Required:

1. In your own words explain what you understand by the term oppressive conduct.
2. Do the directors have Fiduciary Duty towards the company or the Shareholders.
3. What actions members (shareholders) can take against oppressive conduct.
4. What orders can be made under Oppressive Conduct of Affairs by the court in accordance with Companies act 2015.