ExpertACCA · Question 20 · Management, administration and the regulation of companies
Section A
A minority shareholder in a company discovers that the majority shareholder, who is also a director, has been negligently selling company assets to his own family members at a massive undervalue. The company itself refuses to sue the director. What legal action can the minority shareholder take to enforce the company's rights against the director?
Section A
A minority shareholder in a company discovers that the majority shareholder, who is also a director, has been negligently selling company assets to his own family members at a massive undervalue. The company itself refuses to sue the director. What legal action can the minority shareholder take to enforce the company's rights against the director?
Answer options:
Bring a claim for unfair prejudice under s.994.
Bring a derivative claim under Part 11 of the Companies Act 2006.
Petition for the compulsory winding up of the company on just and equitable grounds.
Report the director to the Registrar of Companies for immediate disqualification.
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