Statutory protection of minority shareholders

Abstract

South African company law has undergone substantial change in recent years. Minority protection is one of the issues at the forefront of this transformation. To determine the degree of protection necessary is a difficult task but, when considering the current state of affairs in terms of the Companies Act 71 of 2008, it would seem as if the legislature has opted for an all-encompassing type of protection. The correctness of this approach is by no means a settled question and this dissertation will investigate the changes made, the ambit of the new provision as well as the possible lessons to be learnt from foreign jurisdictions. It remains to be seen whether a more established set of rules (or framework) can eventually emanate from the current state of affairs or whether, with the passing of further precedent, more confusion will inevitably be added to an already unclear remedy.