Fraud on the Minority in United Kingdom

Definition of Fraud On The Minority

In accordance with the work A Dictionary of Law, this is a description of Fraud On The Minority : An improper exercise of voting power by the majority of members of a company. It consists of a failure to cast votes for the benefit of the company as a whole and makes a resolution voidable. Examples are the ratification of an expropriation of company property by the directors (themselves the majority shareholders) and alteration of the articles of association to allow the compulsory purchase of members’ shares when this is not in the company’s interests. Actual or threatened fraud on the minority may give rise to a *derivative action.