chapter  14
34 Pages

MINORITY SHAREHOLDER PROTECTION

Act and the placing of the derivative claim on a statutory footing, have come together to raise the question of to what extent shareholder remedies may be used to enforce better management of companies in the interests of all stakeholders. Minority shareholders may challenge, or threaten to challenge, management decisions as having been taken in breach of duty by commencing a derivative claim. This has raised the spectre in some commentators’ minds of minority shareholders who support public interest groups using the law to influence board decision-making in favour of public interest groups. Detailed consideration of the role of derivative claims in influencing board decisionmaking is outside the scope of this book but may be pursued by reading relevant literature listed under further reading at the end of this chapter.