Shareholders’ Disputes
Some common shareholders’ disputes in private company:
· Denial of access to company books and records
· Dictatorial management style, improper exclusion from participation in the management of the company
· Misappropriation of company funds or assets in breach of fiduciary duty
· Improper diversion of company business
· Unfairly restricting dividends
· Dilution of shareholdings
Possible court proceedings to resolve the shareholders’ disputes
· Unfair Prejudice Petition under sections 724 and 725 of the Companies Ordinance, Cap. 622
· Statutory Derivative Action for remedies for misconduct against companies under sections 731-738 of the Companies Ordinance, Cap. 622
· Derivative Action under Common Law
· Winding Up Petition on Just and Equitable Ground under section 177 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap. 32
Each case turns in its own facts. Each case needs to be examined carefully taking into account the legal principles involved to decide on the right cause of action.
For legal advice and services on shareholders’ disputes resolution, please contact CHOW & CHEUNG, Hong Kong Solicitors & Notary Public [E-mail: cac@ccsn.hk / Tel: +852 2856 3078]
www.ccsn.hk