Can a Shareholder claim against a Company?

Oct 18, 2024 | Publication

A shareholder can claim against a company under some circumstances.

Shareholders have specific rights and interests in a company, and there are scenarios where they might have grounds to make a claim. Some common situations include:

  1. Breach of Shareholder Agreement: If there is a shareholder agreement in place and the company breaches the shareholder agreement, a shareholder may have a claim for breach of contract.
  1. Oppression: Under the Corporations Act 2001 (Cth), shareholders can bring an action if they believe that the company’s conduct is oppressive, unfairly prejudicial, or discriminatory against them.
  1. Derivative Action: Shareholders may bring a derivative action on behalf of the company if the directors are not acting in the best interests of the company, and the company itself has a valid claim.
  1. Access to Information: Shareholders have the right to access certain company information. If the company unlawfully denies this access, a shareholder may have grounds to claim.
  1. Unpaid Dividends: If the company has declared dividends but fails to pay them, shareholders may have a claim for the unpaid amounts.

Each of these claims would require specific facts and legal grounds to be successful. Shareholders considering a claim against a company should seek legal advice to understand their rights and the appropriate legal avenues available to them.

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. If you do not wish to receive newsletters from us, please let us know.

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