Minority shareholder feels squeezed out by the majority
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Minority shareholder feels squeezed out by the majority

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01.07.2026

I hold a minority shareholding in a private company and the majority shareholders have stopped paying dividends and stopped giving me information, while awarding themselves generous salaries. I feel pushed out. Do minority shareholders have any legal protection?

Site Administration 02.07.2026
reply date: 02.07.2026

Yes. The Companies Act 1993 provides remedies for shareholders whose interests are treated unfairly. A shareholder can apply to the court for relief where the affairs of the company are being conducted in a manner that is oppressive, unfairly discriminatory or unfairly prejudicial to them. The court has wide powers and can order the company or other shareholders to buy your shares at a fair price, restrain conduct or even wind the company up in the worst cases. Shareholders also have statutory rights to inspect certain company records and receive annual reports. Start by requesting information in writing and reviewing the constitution and any shareholders' agreement. Excessive remuneration to majority shareholders who are also directors can be examined under the directors' duties and conflict provisions of the Act.

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