{"id":10387,"date":"2023-07-25T20:49:46","date_gmt":"2023-07-25T19:49:46","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=10387"},"modified":"2024-02-15T09:07:18","modified_gmt":"2024-02-15T09:07:18","slug":"protect-minority-shareholder-rights","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/protect-minority-shareholder-rights\/","title":{"rendered":"How to protect minority shareholder rights"},"content":{"rendered":"

An individual is considered a minority shareholder if they have less than 50% of the voting rights in a limited company.<\/p>\n

Such a standing can, depending on a company\u2019s shareholding situation, leave a shareholder vulnerable, especially when it comes to their decision-making powers (or lack thereof). But what can a minority shareholder do to protect their rights? Let\u2019s take a look.<\/p>\n

Understand your rights as a minority shareholder<\/h3>\n

Under the Companies Act 2006<\/a> shareholders have clear rights<\/a>.<\/p>\n

Exactly what a shareholder, and specifically for this post, a minority shareholder, can and can\u2019t do is informed by the percentage of shareholding that they hold in a limited company, and the articles of association the company has adopted.<\/p>\n

\n \n \"FREE\n \"FREE\n <\/a>\n <\/div>\n \n

Below you will find the rights a minority shareholder has if a company has been formed with the Model articles of association<\/a> (as most companies are):<\/p>\n

The rights of a person with a 5% (or less) shareholding:<\/h4>\n