Section 205 – Minority Oppression
Groundbreaking or still defined by the “privilege of incorporation?”
Section 205 of the Principle Act has been largely inﬂuential in how it has wrestled
absolute control from the majority shareholders and directors to enable minority
shareholders to effect change where otherwise they would be incapable of doing so.
However this in itself is limited in its scope, largely by the rule in Foss v Harbottle and the
overarching ʻprivilege of incorporationʼ that gives rise to case law such as this and statutes.
Thus, although it has redressed the balance of rights given to shareholders, it is of little
effect in a body of law that appears to favour the legal over the natural person.