Yes, in circumstances provided by the Companies Act. A shareholder can seek judicial relief against unauthorized acts or conduct prejudicial to shareholder rights, and qualifying shareholders can in some cases bring a claim on behalf of the company.
Unauthorized acts
Section 138 allows a shareholder to apply to court to restrain a director or officer from acting beyond his or her authority on behalf of the company.
Prejudicial conduct
Section 139 permits a shareholder to seek an appropriate court order where the company’s affairs are being or are likely to be conducted in a manner prejudicial to the shareholder’s rights or interests.
Derivative actions
Under section 140, where the company fails to sue to protect its own rights, a shareholder holding at least 2.5% of paid-up capital may in qualifying circumstances sue on the company’s behalf, or multiple shareholders reaching the statutory collective threshold can do so.
Important point
Not every disagreement is grounds for a court challenge. The legal basis, company documents, voting position and evidence must be examined.