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What Are Minority Shareholder Rights?

Posted: 23rd May 2025
Written by: Kirsty Fairbairn

Ready to learn more about minority shareholder rights? Whether you’re a minority or majority in your shareholders’ agreement, knowing where you stand is crucial to protecting your interests, asserting your rights, and driving key company decisions.

Watch the video below, in which a member of our expert legal team, Kirsty Fairbairn, explains minority shareholder rights in business.

Minority Shareholder Rights Transcript:

You own shares in a company, so you can’t just be kicked out, right? Well, it depends.

Our client was a minority shareholder in a business. They assumed they were safe until the majority shareholders forced a buyout through a drag-along clause. They had no choice but to sell.

If your company’s articles or shareholders’ agreement allows it, you can be removed, especially if there’s a compulsory transfer clause. If you’re a minority shareholder with no protections, you have very few rights if the majority decide they want you gone.

Whether you’re a minor or majority shareholder, it’s important you know your rights and have the confidence that your agreements give you the controls and protections you need.

If you need advice, get in touch, and we’ll be happy to help.

Enquire about Minority Shareholder Protection

Newtons Solicitors boasts offices throughout Yorkshire, the North East, and Cumbria so that you can access legal services in the location most convenient to you.

If you would like to learn more about minority shareholder protection and rights or claims of unfair prejudice against shareholders, please don’t hesitate to reach out to our friendly team. We’re here to guide you through the legal field of business so you can gain the peace of mind and protection you need.

Additionally, browse our expertise in commercial disputes, as showcased in a previous case study where we secured a multi-million-pound settlement.