An analysis on the protection of the minority shareholders' rights in Uganda

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Date
2019-07
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Publisher
Kampala International University,School of Law
Abstract
The study aimed at examining the extent to which minority shareholders are protected by the Uganda's legal framework in publicly held companies. The objectives of the study were; to examine the legal framework for protection of minority shareholders rights in Uganda, to examine the rights and infringements on the minority shareholders rights in Uganda, to identify the remedies for the minority shareholders in case of infringement of their rights. The researcher used qualitative research that used desktop review of primary and secondary data on the legal frameworks for minority shareholder protection. Primary sources will include the Constitution, legislation, company's Annual Reports, decided cases relevant to the study. Secondary sources of information used include textbooks, relevant newspaper articles, Journal Articles, and on-line sources. During the field studies, the researcher applied the questionnaire approach to the main directors and some shareholders which involved interviewing them and getting reliable primary information on the subject matter of the study. The purpose for visiting or going to the field was to gather the primary and reliable source of information, to find out the problems or prejudices that are faced by the minority shareholders. The legislators who enacted the Companies Act of 2012 which establishes the division of the shares among the shareholders in the company had in mind that people of shareholder in that area of study and Ugandans as a whole have been suffering with cost involved in institution of case in the formal court, transp01t expenses, legal professional fees expenses due to the high level of poverty and the high court of the proceedings in court. Minority share Holders who may be the majority company members you find they cannot find or afford the legal representation in the formal courts. Therefore, it is incumbent upon the directors and the majority shareholders to abide the Articles of Associations and the memorandum of associations which govern the company. They should have the inner courts or proceedings or tribunal to control the evil of the violation of other members' rights so that justice can be seen done in the company and among the shareholders and other company members.
Description
A dissertation submitted to the School of Law in partial fulfillment of the requirements for the award of Bachelor of Laws of Kampala International University
Keywords
protection, minority shareholders', Rights, Uganda
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