Minority Shareholders' Protection under English Law and a Comparison with Turkish Law

Abstract

This article will focus on the UK's minority shareholder protection system. The case of Foss v. Harbottle (1843) established the principle of the protection of minority shareholders. That principle underwent numerous reforms and developments under common law and regulations until proper remedies were established in 2006 under the Companies Act. Many issues have been examined in the caselaw, and the remedies and rights for minority shareholders have been subsequently codified. As a result, it can be stated that the protection of minority shareholders in the UK includes practical and real-life suggestions from a business setting rather than theoretical and hypothetical suggestions. Many mechanisms have been extensively tested to ensure that they offer genuine protection for shareholders. Therefore, the paper will provide some background on the development of UK company law related to protection of minority shareholders. Furthermore, this part of the research will set out the current doctrinal position with regard to minority shareholder protection. Some attention will also be given to important cases. The paper will also analyze the main remedies available to minority shareholders in the UK, which are the statutory derivative action, unfair prejudice petition, and winding-up order.