Unfair Prejudice Petition | Derivative Action | Just and Equitable Winding-up
In this current uncertain economic environment, investors may feel frustrated in being repeatedly asked to contribute capital or face dilution. This is especially the case for minority investors who may have limited rights and/or access to the books and records of the company.
Set out below is an overview of some of the common methods that a shareholder can seek redress for wrongs committed against the company.
Presentation of an unfair prejudice petition
Instituting a derivative action
Petition for winding up on just and equitable grounds
Who may claim
An existing shareholder of the company, including
A former shareholder of a company
An existing shareholder of the company or of an associated company of the company
Any creditor or creditors (including any contingent or prospective creditor)
Contributory or contributories (e.g. shareholder)
Trustee in bankruptcy
Personal representative of a contributory
Nature of matters covered
Company’s affairs being conducted in a manner unfairly prejudicial to the interests of the member(s); or
Actual or proposed act or omission of the company being unfairly prejudicial to the interests of member(s)
Examples of such conduct:
Misconduct may refer to:
If you wish to know more about how we can help or any issues raised in this article or more information, please contact:
Eunice Leung, trainee solicitor (email@example.com)
This article is general in nature and is not intended to constitute legal advice. Please seek professional advice before taking any action in relation to matters dealt with in this article.