Section 216 of the Companies Act is known as the oppression or unfair prejudice section.
Where someone has harmed the company but is in control of the company (for example, a director), the rule in Foss v Harbottle prevents shareholders starting a lawsuit against the wrongdoer.
However, section 216 allows the shareholder to apply to court and the court may allow an action (or lawsuit) to be started against the wrongdoer in the name of the company. However, this course of action is not recommended.
The foreign equivalents of this section have been described by judges as "a shambles" and "a legal minefield". These are warnings that even experienced lawyers may have a hard time navigating the complicated case law relating to this section. Perhaps using section 216A may be a better choice.
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