11.1 Special problems faced by minority shareholders

There are remedies available to a shareholder of a company if: * the affairs of the company are being conducted in a way that is unfair to that shareholder or to other shareholders of the company; or * the affairs of the company are being conducted in a way that is against the interests of the company as a whole. A Court may, for example, order the winding up of a company or the appointment of a receiver.

[sections 246AA, 461]

11.2 Buy—back of shares

A company may buy back the shares of a shareholder who wants to sever their relationship with the company.

[sections 257A—257J]

11.3 Selling shares

A shareholder in a company who wants to sever their relationship with the company may decide to sell their shares. However, the shareholder may not be able to sell their shares readily—particularly if they want to sell their shares to someone who is not an existing shareholder. Some of the difficulties they may face in that case are: * under the replaceable rules the directors have a discretion to refuse to transfer the shares; and * restrictions in the company's constitution (if any) on transferring shares.

[sections 995, 707, 1091D—1091E]