Shareholder Disputes and Derivative Actions

Stuarts litigation attorneys regularly advise shareholders on the options available to them under Cayman Islands law where they consider that their rights have been infringed. We regularly advise on disputes between shareholders, acting on behalf of both majority and minority shareholders and also act for clients in relation to applications, under section 46 of the Companies Act, for a shareholder to be entered onto a company’s register of members.

Shareholders have several options available to them under Cayman Islands law where they consider that their rights have been infringed.

Firstly, a shareholder may have a personal right against the company that is derived through the company’s articles of association.

Another option for a minority shareholder may be to apply for permission to bring a derivative action in the name of the relevant company against the individuals controlling the company. Such actions are to enforce a right held by the company, rather than the individual shareholder. 

Alternatively, a minority shareholder could petition the Court to wind-up the company on the “just and equitable” ground under s.92(e) of the Cayman Islands Companies Act. 

We also regularly advise on disputes between shareholders, acting on behalf of both majority and minority shareholders.

Stuarts also acts for clients in relation to applications, under section 46 of the Companies Act, for a shareholder to be entered onto a company’s register of members.

See more information on Directors Duties and Commercial Litigation and Insolvency.