In a recent development, the Supreme Court highlighted the guidelines for identifying the abuse of rights by majority shareholders in a company.
The Court emphasized the need to analyze the abuse of rights based on two fundamental premises: the first involves demonstrating that the decision’s vote is aimed at causing harm to the company and other shareholders, while the second requires showing that the voters obtained personal benefit from the decision.
Importantly, the Court clarified that just because there’s a majority group of shareholders, it doesn’t mean that the decisions of minority shareholders should be ignored. If minority shareholders are harmed by decisions, they have the right to challenge them under certain conditions.
Upcoming shareholder meetings are considered crucial for a company’s decision-making process, especially with regard to the following year’s plans. Therefore, it’s vital for all shareholders to understand and follow the specific rules and guidelines during these meetings.
