What generally protects minority shareholders from majority shareholder decisions?

Minority shareholders are typically protected from the decisions made by majority shareholders through certain exceptions to corporate laws, which provide safeguards for their rights and interests. These exceptions can include the right to dissent in specific corporate actions like mergers or acquisitions, the right to sue for unfair treatment or oppression, and rights related to the distribution of dividends.

For instance, if the majority shareholders make decisions that disproportionately benefit themselves at the expense of minority shareholders, the latter might be able to invoke these legal protections. Laws may also have stipulations that prevent majority shareholders from unfairly squeezing out minority shareholders or from abusing their control to the detriment of the minority’s interests.

Legal representation can support minority shareholders in asserting their rights, but it is the underlying exceptions in the law that provide the foundation for their protection. Regulatory oversight focuses on compliance and governance, but it does not enforce direct protections for minority shareholders against majority decisions. Majority rule, while a principle of decision-making in corporations, does not inherently protect minority shareholders; rather, it is the exceptions within the law that are designed for this protective purpose.