Under Part 14 Division 2 of the Companies Ordinance, unfair prejudice petition is another useful remedy for minority shareholders. This remedy empowers a shareholder of a company to petition to the court, where his interests have been unfairly prejudiced by the act or omission in respect of the company. The court has the power to make such order as it thinks fit in respect of the granting of relief.
The reliefs may include:
1. An order for the buy-out of shares from the minority shareholder at a fair price,
2. Granting of a mandatory or prohibitory injunction order
3. Awarding damages and interests for any loss suffered by the shareholder personally.
Unfair prejudice can include but not limited to below examples:
1. The dilution of equity interest
2. Exclusion from management
3. Lack of access to information about company’s affairs