Company Law, Essay questoin Example | Topics and Well Written Essays - 3000 words

ac attach to Law, questoin - Essay Examplethey could soundly carry out their operations and stating the duties and responsibilities of all the components of the corporations be they shareholders or directors. In UK, the Company Act contains all these rules and regulations for companies established in the United Kingdom and Northern Ireland. However, two versions of the Company Act, namely Company Act 1985 and Company Act 2006 house varied rights and obligations for shareholders as explained below. Minority shareholders (those whose shareholding is 50% or less), in particular, are given some forms of protection from mass shareholders.A member of a company may apply to the court for an order under this Part on the ground that the companys affairs are being or turn in been conducted in a manner which is unfairly prejudicial to the interests of its members generally or of some part of its members Emphatically a member means a shareholder1Instituting a legal suit Shareholders could st art a legal proceeding against the directors and the companies in case unexpected unfair practices are discovered. This empowers shareholders to boldly challenge the directors or other attention members whenever they abused their positions and undermine the integrity of the companys constitution2. Some of the abuses include but not limited to the misuse of companys asset, exaggerated self-aggrandisement and absolute breach of companys rules to satisfy personal interests. So, minority shareholders, for instance, could only use the power of law here to seek redress against the majority shareholders, managers and directors. For the fact that bad management on the part of the directors could destroy the companys operations and plunge everyone into insolvency, the opposing action by the shareholders would help offspring sanity to the companys activities.A typical instance of when shareholders kicked against the selfish desires of directors who tried to break the companys rules in purs uit