As stated in the decision of Gambotto v WCP Ltd (1995) 182 CLR 432 at 447:

A share is liable to modification or destruction in appropriate circumstances but is more than a ‘capitalized dividend stream,’ it is a form of investment that confers proprietary rights in the investor.

With reference to the above, case law and statute as necessary, analyze:

1. the decision of Gambotto and the fraud on the minority remedy;
2. the statutory oppression remedy in ss 232-234 of the Corporations Act 2001 (Cth);
3. the distinction between the fraud on the minority remedy and the statutory oppression remedy; and
4. how these two member’s remedies attempt to achieve a balance between the interests of majority shareholders and minority shareholders.

Answer rating: 100% (QA)

1 Gambotto v WCP Ltd 1995 182 CLR 432 at 447 The most important legal issue involved in the case was Whether the actions taken by Industrial Equity Ltd IEL to amend the provisions to acquire the Gambo... View the full answer