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Corporate Law Essay Example

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Corporate Law

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Corporate Law. A similar perspective can be obtained with reference to the case example of ‘Gambotto v WCP Ltd’ which is linked with the deliverance of adequate information to the minority shareholders preserving fairness by the majority shareholders of a particular entity. The case revealed that the procedure of expropriation of shares should be fair as well as be valued independently. Moreover, the case also affirmed that the amount which would be paid to both the minority as well as the majority shareholders must take into concern the factors of standard allocation of dividends, market value, and nature of the business corporation along with its future. In response to this particular case, the court proceeded with the decision that the legal proceedings would be valid only if the majority shareholders can prove that fairness has been maintained in all circumstances concerning the rights held by the minority shareholders as per the company articles.

However, the decision which was undertaken by the court ultimately created vital obstacles for the majority shareholders in imposing their dominant influence over the organizational policies and specifications, developing a stronger position for the minority shareholders ( ). A Brief Overview of the Remedies Several remedies can be identified, which are readily accessible to the minority shareholders, for the purpose of dealing with situations where the majority shareholders are observed or suspected to misuse their absolute power or rather breach their duties by a certain extent. It is in this context that the enforcement of numerous statutory rights which tend to offer legislative solutions to the minority shareholders have often been identified to be implemented by various nations providing much relief to the plaintiffs ( ).For instance, in Australia, the two significant mechanisms which defend the rights, as well as the interests associated with the minority shareholders against the misbehavior deciphered by the majority shareholders, are ‘Part 2 F.1’ and ‘Part 2F.1A’ of the Corporations Act followed in Australia. Corporate Law.

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preview essay on Corporate Law
  • Pages: 8 (2000 words)
  • Document Type: Assignment
  • Subject: Law
  • Level: High School
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