What Are The Differences Between A Personal Action And A Derivative Action?

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L4: MINORITY MAJORITY PROTECTIONS 1. What are the differences between a personal action and a derivative action? [10 marks] 2. Remedies which the Court can grant if ever oppression is established in an action entered by an aggrieved shareholder. 3. There are shareholder remedies. Explain 4. I. What do you understand by the “oppression remedy”? II. What do you understand by “class rights? Introduction In day-to-day working of a company, certain decisions regarding the management of the company are generally taken by the majority members. In this process of decision-making, there may arise certain occasions wherein the interests of the majority shareholders differ with that of the minority shareholders. In such a case, if the decisions taken, are not in the larger interest of the company as a whole, but only caters to the interest of one particular group, the minority group whose interest may have been violated can raise its voice against such an action. Thus, based on democracies (understand the importance of protecting the rights, cultural identities, social practices, and religious practices of all individuals); a system of majority rule with respect to minority rights has been put into place. A limited company has two types of Shareholders. 1. Majority Shareholder 2. Minority Shareholder 1. Majority Shareholder A single shareholders who owns & controls more than half of a company shares, or sometimes, a small group of shareholders who own & collectively control more

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