Corporations Act 2001
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.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.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.
[ CCH Note: The references to sections " 1091D - 1091E " are legislative oversights. The references should be to sections " 1072F " and " 1072G " .]