The Companies Act 71 of 2008, as amended ("Companies
Act"), provides for the protection of minority
shareholders' rights. Section 163 of the Companies Act allows
for a minority shareholder to apply to a court for relief should
they feel oppressed, unfairly prejudiced, or their interests are
unfairly disregarded by the board of directors, the majority
shareholders, or a separate juristic entity.
Considering the above, any action taken to remove a minority
shareholder needs to be taken with due consideration to the above
provisions.
So what actions can we take?
Overview
There is no rule of law that caters explicitly to the removal of
a shareholder, and a shareholder may not be forced to sell or
forego its shares. Unlike that of a director who deals with the
running of the business, the nature of a shareholder is inherently
linked to ownership and control.
