Protection of Minority shareholder

A minority shareholder in a company does not have much power

to influence its management and, therefore, sometimes their
interests are disregarded. A minority shareholder can do so in a
number of ways, eg,
they may bring an unfair prejudice claim,
pursue a derivative action
seek a winding-up petition.

Protecting the rights of minority

shareholders
A minority shareholder may bring a claim when the company has
been or is being managed in a way that is 'unfairly prejudicial'
to some or all of its shareholders.
While these claims can be brought in relation to any kind of
company, they are usually brought successfully only in relation to
companies where the claimant shareholder reasonably expected
to be involved (usually as a director) in the management of the
company.
The rights of shareholders against each other and against the
company are generally as defined by the articles of association of
the company and by relevant statute law, in particular by the
Companies ordinance.
The general principle is that a company is managed by its
directors (not by its shareholders) and that a decision of the
majority of shareholders reached in general meeting is binding on
the minority.
A company should be run in accordance with its articles of
assiciation relating to a shareholders personal rights and
corporate governance. If it is, a minority shareholder will usually
have no right to challenge the decisions of the directors or the
majority. Minority shareholders claims all represent exceptions to
this general rule, largely based on equitable principles. The
availability of these claims and the prospects of success are
limited accordingly.

The types of claim and remedy

The Practice Notes in this topic deal with three types of claim:
1. The unfair prejudice petition

2. The petition for the just and equitable winding up of a company.

3. The derivative claims

Suggestion.
Company ordinance give the right to the miniority shareholder for
their protection. miniority feel free invest their money in any
public lmited company.The right which is given by the company
ordinance is fullfill the requirement of the shareholder , but it can
be changes according to the requirement.