Question: "Andy, Bob and Charlie are directors and equal shareholders of Roxy Pte Ltd. Andy is the managing director and Bob is the finance manager of the company. Recently, Andy and Bob each purchased a car on the company account. Charlie became very unhappy when he found out that the cars are being used by their families, incurring expenses for petrol at company expense. Charlie has complained about the use of the cars but Andy and Bob disregard his complaints and tell him that there is nothing he can do about it. Advise Charlie of his rights as a minority shareholder."

Pointers:

• Mention "proper plaintiff rule" i.e., Foss v Harbottle
• Mention statutory remedies for minority protection (Section 216 and 216A of the Companies Act i.e., derivative action)
• What are the Personal Rights - courses of action available to Charlie? Which ones are relevant for the scenario?

Statutory remedies available to protect the personal rights of shareholders include:

Legal action to obtain any of a wide range of remedies for oppressive conduct (Companies Act Section 216)

Wind up the company because it is just and equitable to do so (Companies Act Section 254(1)(i))

Seeking an injunction to compel compliance with the provisions of the Companies Act (Section 409A(2))

Seeking an injunction to prevent someone from contravening the provisions of the Companies Act (Section 409A(1))

• Please use ILAC (Issue, Law, Application, Conclusion) when answering