ABSTRACT
There are many ways in which non-controlling shareholders in a company can be ‘squeezed out’1 or their interests in the company prejudiced. In some respects shareholders of public companies are in a better position in that they are able to realise their investment if need be. Furthermore, listed companies are subject to stock market control, and bad publicity of majority’s unfair conduct towards the minority may affect the company’s profitability and share value. For minority shareholders in an unlisted company, there is no such readily available market. Publicity is unlikely to affect substantially the majority’s interest in the company but may make it even more difficult for the minority to realise their shares in the company. Even if the minority could find a buyer, the price they would get for their shares is not likely to reflect their true worth. There may also be restrictions in the company’s articles on a member’s right to transfer his shares.
