Overview

One of the greatest challenges a company director faces is finding a path between the diverse interests that affect the company and the people interested in it.

When exercising their powers to manage the business of the company, directors must do so in the best interests of the company. However, in exercising these powers, directors must also treat fairly other persons who are affected by them. If shareholders are not treated fairly, the law gives them the remedy to apply to the court for an order that the company's affairs are being conducted in a way that is unfairly prejudicial to the shareholders.

This briefing offers advice on how to keep this relationship harmonious and the options available to a director if any shareholder rights issues do arise.