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Rights of members (Members do not have a specific right to (Be paid a…
Rights of members
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Unfair prejudice
If a member considers that any act of the company could result in an unfair prejudice to their interests they can petition the court to obtain relief
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Derivative claims
A member may bring an action on behalf of the company against a director or a third party for an act or omission if the company has suffered loss
Compulsory acquisition
Where a major shareholder has acquired 90% or more of the share capital of a company, the holder is entitled to give notice to the other shareholders that they desire to acquire their shares
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Usually linked with and expressed in terms of the rights attached to the shares which they hold, although not exclusively so
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CA2006 provides for specific rights attaching to shares, these mainly relate to the variation of the rights of shareholders
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Inspect written memoranda of the terms and conditions of a director's contract of service for the company and any of its subsidiaries
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Receive a copy of the annual accounts at least 21 days before the GM at which they are to be laid (public companies only)
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Petition the court to obtain relief where the member considers that any act (proposed or actual) will or has resulted in unfair prejudice to his interests
Transfer their shares to others, although any transfer would be subject to the terms of the articles of association
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Members as the owners of the company can exert power and control over the activities of the board but the actions that can be taken are related to the percentage that they hold either as an individual or as a group, this is known as a concert party and whether or not they are voting or non voting shares
Only certain acts can be undertaken by the shareholders such as appointing or removing a director from office, changing the name of the company or authorising a service contract for a director which gives them job security for more than two years