Shareholder Disputes: Protecting Your Rights in Private Companies

Business Law: 27 November 2025

Author: Aaron Stewart - Our People

Shareholder disputes can have a serious impact on private companies. Conflicts between shareholders, especially where minority shareholders feel oppressed or unfairly treated, can disrupt business operations, harm relationships, and reduce the value of investments.

At Aitken Partners Brisbane, Principal Lawyers Erin Prout and Aaron Stewart have extensive experience in shareholder disputes, corporate governance, and insolvency law. Both have successfully guided clients through complex shareholder conflicts, achieving excellent outcomes in court and via negotiation. Erin’s recognition as a Women in Insolvency Victoria Awards finalist further highlights her standing as a leading expert in corporate and insolvency law.

What Are Shareholder Disputes?

A shareholder dispute arises when shareholders disagree on management, governance, or the direction of a company. Common disputes include:

• Minority shareholders excluded from company decision-making.
• Dilution of shares without proper process or consent.
• Disputes over dividends, profit distribution, or corporate opportunities.
• Limited or denied access to company records, affecting investment assessment.

Disputes can be resolved through negotiation, mediation, or court proceedings. The Corporations Act 2001 (Cth) provides remedies for shareholders who have been oppressed, unfairly prejudiced, or discriminated against.

Why Legal Process and Proper Documentation Matter

Proper legal and procedural steps are critical for successful shareholder dispute resolution:

• Establish evidence of oppressive, unfairly prejudicial, or discriminatory conduct.
• File claims under the Corporations Act with supporting documentation and evidence.
• Attend court proceedings where remedies may include:
• Buy-out of shares at fair value.
• Restructuring company affairs or reversing unfair share issues.
• In extreme cases, winding up the company.

Accurate documentation, including shareholders’ agreements, company records, and communications, is essential to protect your rights and strengthen your claim.

Case Example: Groves v Tas Fumigation & Pest Services Pty Ltd & Anor [2025] FCA 1089

A recent example demonstrates how the courts protect shareholder rights:

In Groves v Tas Fumigation & Pest Services Pty Ltd & Anor [2025] FCA 1089, the Federal Court addressed a shareholder oppression claim in a private company.

The Court:

• Found that minority shareholders had been treated oppressively and unfairly prejudicially.
• Granted relief consistent with the Corporations Act, demonstrating that minority shareholders have effective remedies.
• Confirmed that courts will intervene in small or closely held companies, providing a clear path to enforce shareholder rights.

Key lessons for shareholders:

• Courts take shareholder oppression seriously and provide remedies to protect investments and participation rights.
• Properly documented agreements, corporate governance, and evidence of conduct are critical for success.
• Early legal advice can prevent disputes from escalating, protecting both relationships and investments.

How Aitken Partners Brisbane Can Assist

Navigating shareholder disputes requires specialist legal expertise. At Aitken Partners Brisbane, Principal Lawyers Erin Prout and Aaron Stewart provide strategic guidance and representation to ensure clients:

• Understand their legal options and remedies.
• Draft and review shareholders’ agreements, corporate governance documents, and dispute resolution clauses.
• Bring or defend oppression or derivative claims, including preparation of pleadings, evidence collection, and valuation advice.
• Negotiate outcomes such as buy-outs or corporate restructuring, and represent clients in court if necessary.

With Erin Prout’s recognised expertise in insolvency and shareholder disputes, and Aaron Stewart’s extensive experience in corporate litigation, clients receive high-quality, strategic legal support to protect their business interests and shareholder rights.

Take Action to Protect Your Shareholding

If you are a shareholder concerned about exclusion, unfair treatment, or dilution of shares, early legal advice is critical.

Contact Aitken Partners Brisbane today to speak with Principal Lawyers Erin Prout and Aaron Stewart. With their guidance, you can confidently resolve shareholder disputes and secure your rights under the Corporations Act 2001 (Cth).