Minority Shareholder Oppressions Claims
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There are many reasons why Minority Director/Shareholders may be squeezed-out of the corporation. The reasons are usually similar resulting in Majority Director/Shareholders concluding that the Minority Director/Shareholder should not take further participation in the management of the Corporation. What are the tactics used to remove Minority Members?
In most cases, the Minority Director/Shareholder will have to apply to the Supreme Court seeking access orders to the financial books and records. In addition to the common law right to inspect the books and records, current directors have the personal right, under s290 of the Corporations Law, to access the financial records at all reasonable times. Also, after ceasing to be a director, the right continues for a period of 7 years under section 198F(2) to inspect the books and records (including financial records) at all reasonable times for the purpose of legal proceedings. Under section 198F(4) the company cannot refuse access and must allow access: Oswal v Burrup Holdings Limited (Included Corrigendum dated 21 July 2011)  FCA 609 is a recent case.
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