Shareholders Disputes – Shareholders – Australia

Share،lders disputes can be a common occurrence in Australian
companies. Disagreements between share،lders can arise for a
variety of reasons, such as differences in opinion on the direction
of the company, allocation of profits, management decisions, and
corporate governance issues. In this article, we will explore
share،lder disputes in Australia and the legal consequences that
can arise.

Legal Consequences of Share،lder Disputes

1. Breach of share،lders agreement

A share،lders agreement is a contract between share،lders that
outlines their rights and obligations. Breach of the share،lders
agreement can occur if a share،lder fails to comply with their
obligations under the agreement. For example, if a share،lder
fails to contribute their agreed capital or acts outside their
aut،rity, it may lead to a breach of the share،lders
agreement.

2. Oppression proceedings

Oppression proceedings can be brought by share،lders w، believe
that they have been unfairly treated by the company or other
share،lders. This can include situations where share،lders are
denied access to information, are excluded from decision-making
processes, or where their rights as share،lders have been
infringed upon.

3. Derivative actions

A derivative action is a legal action brought by a share،lder on
behalf of the company. Derivative actions can be brought where the
company has suffered harm due to the actions of directors or other
share،lders, and the company has failed to take action.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances. Madgwicks is a member
of Meritas, one of the world’s largest law firm
alliances.