Abstract
In assuming the role of a shareholder in a company, a person undertakes to be bound by the decisions of the majority for those decisions on the affairs of the company are arrived at in accordance with the law, even where they adversely affect the rights of the shareholders.1 The principle of the supremacy of the majority is essential to the proper function of companies.2 Reliance is placed upon the principle of majority in order to achieve optimum success in the corporate governance of a company by having it function as a uniform entity. At times the effect of such then becomes the minority being prejudiced by the decision undertaken by the majority. Previously the minority had not been offered any protection against such adverse decisions of the majority. Such decisions would tend to adversely affect the interests of the minority shareholder or those of the company. In an effort to provide protection for the interests of the minority shareholder which may be infringed by the decision of the majority, the legislature has sought to develop a statutory mechanism to assist the minority shareholder through the adoption of the oppression remedy into the South African company law. The minority shareholder has available to it now a protection mechanism which seeks to ensure that not only the interests of the shareholder but the interests of the company which may be negatively infringed upon by the decision of the majority are protected from such acts and considered in the decision-making process...
LL.M. (Commercial Law)