DISCUSSIONS SURROUNDING THE PRINCIPLE OF MINORITY SHAREHOLDER PROTECTION

Abstract

This article analyses the arguments of thosewho do not necessarily agree with certain rights to begranted to the minority shareholders in companies toprotect their interests. Following the presentation ofthose arguments, the attention will be given onopposite views in this regard to understand thenecessity of the existence of minority shareholderprotection. Since majority shareholders have higherpercentage of the capital, so that the voting powers,their approach unfortunately ignores the rights ofminority shareholders in most cases. This abusiveapproach of majority shareholders affects the interestsof minority shareholders and companies in a negativeway. In addition, whole national economy is adverselyaffected from this situation. To find a solution for thisproblem, inclusive protection is provided to minorityshareholders.With regard to this situation, while inclusiveprotection is provided for minority shareholders togain an adequate remedy, there should nevertheless bea legal framework which prevents majorityshareholders’ misuse of their corporate powers. In thisarticle, the principle of minority shareholder protectionwill also be considered in the light of Turkish andEnglish company law to see how different jurisdictionsfound the solutions for similar problems regardingminority shareholders