Litigation

Minority Rights: The Maltese Courts’ Treatment of ‘Unfair Prejudice’

Perhaps one of the clearest manifestations of the legislator’s general mandate to protect those in a weaker, more vulnerable position, is that afforded to minority shareholders in virtue of the company law remedy of unfair prejudice.

The concept of ‘majority rule’ dictates that within a company structure, a minority shareholder will effectively have little control over the way the company is operated. It has long been recognised that this can lead to problems of minority oppression.


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